I have just read MSN's StockScouter report about Apple Inc. ( http://moneycentral.msn.com/investor/StockRating/transparency.asp?Symbol=AAPL ) and it says there that:
• The price-to-sales multiple is significantly higher than the average for all stocks in the StockScouter universe. Very positive for a medium- to large-sized company like AAPL
How come?
2007-07-12 22:12:22 · 2 answers · asked by Grim R 1 in Business & Finance ➔ Investing
You really have to compare the stock to others in the same industry and see what their P/S ratio is and if it's higher, go to their and competitors websites and read what's going on with the company and see if you can see what's different
2007-07-15 16:55:21 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Don't worry about it. Ken Fisher, the inventor of the P/S ratio, doubts that it has any predictive value now because so many people are watching it. I am really confused because when it was first invented, a LOW P/S ratio was an indicator of a cheap stock.
2007-07-13 01:35:38 · answer #2 · answered by Ted 7 · 0⤊ 0⤋