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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?


To: Pink Minion who wrote (3237)9/25/2002 12:59:56 AM
From: Kirk ©  Read Replies (1) | Respond to of 25522
 
>>And why software companies have a higher price. It's a different business. Higher your margins, the higher the P/B and P/S will be. <<

Yes, but when they don't pay ya a dividend, what are they worth? You should be able to write a formula and the only one I know is the discount cash flow analysis of future earnings and/or dividends.



To: Pink Minion who wrote (3237)9/25/2002 12:46:33 PM
From: Cary Salsberg  Read Replies (1) | Respond to of 25522
 
"Margins" are on sales, so high margins, high P/S is almost a tautology.

Margins and book or P/B are the issue and you have not addressed it.