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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (3452)	8/3/1998 3:50:00 PM
From: Scott Stents	Read Replies (2) \| Respond to of 13953

Price to book is meaningless on an immature company like EGRP. You need to look at cash flow relative to the balance sheet. If P/B meant something, then EGRP would issue an infinite amount of shares at $25, meaning their BV would approach $25/share, and applying a multiple of 3 would in theory enable them to instantly sell the stock at $75 on the market. Thats why P/B ratios cant be applied in companies who have recently issued stock (as was the case with EGRP w/ Softbank).