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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD -- Ignore unavailable to you. Want to Upgrade?


To: Alomex who wrote (2454)6/3/1998 10:43:00 PM
From: Elroy  Read Replies (2) | Respond to of 3115
 
<<It currently trades at a Price/Sales ratio of 5 and forward Price/Earnings of over 30.>>

Successful software companies (MSFT, SAP, PSFT, BAAN, SEBL, many others) trade at much higher sales and earnings multiples than RATL. On a valuation basis for software stocks, the company is inexpensive.

Elroy