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To: ownstock who wrote (23218)12/28/2002 8:42:38 PM
From: Cary Salsberg  Read Replies (1) | Respond to of 24042
 
RE: "P/S is not a useful way in and of itself to value a company."

In various circumstances, I use price/book, PE, and P/S. None are applicable in all circumstances and each has seemed to me to be best in certain specific circumstances. None predict the future, but all are measures of the value the market ascribes to future prospects.

P/S is measure of the relationship between a company's revenues and its market capitalization, what you are paying for and how much you are paying. What is a more useful measure?