SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Intersil - ISIL -- Ignore unavailable to you. Want to Upgrade?


To: Czechsinthemail who wrote (459)3/28/2004 8:41:54 AM
From: Dave  Read Replies (1) | Respond to of 467
 
Baird,

"Value" is not defined as going higher up the income statement and comparing various companies' Price to Sales ratio.

In fact, the price to sales ratio is heavily dependent upon two items:

1. Net profit margins
2. Future growth

In fact, ignoring "future growth", when you compare Intersil's margins to other companies' margins, you find out rather quickly that Intersil's margins are substantially lower thereby "explaining" why ISIL's P/S ratio is much lower than its comps.