@nik1 Oh sorry man I misunderstood the question. No I’ve never seen a company have a high PS compared to forward PE but I’d usually stay away if the PS is trading way above its net income multiple. Sounds to me like the stock is getting a hype around it that people are pricing in a massive...
@nik1 It depends on the industry. High PE is normal for something sought after along with high PS ratio like tech for example. But by your example specifically I would conclude that stock B may be cheaper but why is unknown. I personally prefer ROIC and ROCE as long as it’s higher than the cost...
