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If a stock has a low p/e and high p/s(relative to its industry/sector)…what would you conclude?
@nik1 Guy, the math. It is not possible. Whatever source you are using is either calculating it wrong or using two different time periods for the S and E, making the multiples not comparable. Try calculating it yourself. Look at NVDA’s revenue, then look at its net income. They are different... -
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If a stock has a low p/e and high p/s(relative to its industry/sector)…what would you conclude?
@nik1 I would conclude that you are calculating your ratios incorrectly if you are getting PE = PS. As for having higher margins than its industry peers, that can mean a lot of things. It can mean they have different accounting, it can mean one is run more efficiently. It can mean one is able... -
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If a stock has a low p/e and high p/s(relative to its industry/sector)…what would you conclude?
@nik1 If P/E = P/S, then basic algebra says that E=S. NVDA certainly does not have its net income equal to its revenue. -
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If a stock has a low p/e and high p/s(relative to its industry/sector)…what would you conclude?
@nik1 How can a company have the same p/e and p/s? That means e = s… In general low PE high PS vs peers would just tell you it has higher margins vs its peers.