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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 Forward P/E cannot be compared with trailing P/S. Forward P/E will driven by forward Sales. That for Nvidia is growing at a crazy pace and margins are also growing big times as the margins on their DC GPU are unprecedented. I am expecting their margins to cross 65% this year. So you cannot...
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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 Why would you compare Trailing P/S with Forward P/E !!! They are not related. The fact that Nvidia's P/E is expected to go down dramatically shows that they are in hyper growth phase. Just open one of their earnings release to understand how good it is. Generally companies with Low P/S...
  3. G

    If a stock has a low p/e and high p/s(relative to its industry/sector)…what would you conclude?

    @nik1 It does not. Its P/E is 72 and P/S is 36. Makes sense as their Profit margin is 50%. You are probably looking at its forward P/E and current P/S. Once they hit future earnings, its P/S will be down 50% if the price remains the same.
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