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[sharechat] P/S Ratio


From: "David Reid" <aspex@ix.net.nz>
Date: Thu, 6 Jan 2000 22:12:50 +1300


P/S ratio will be very low for shares such as supermarkets and vehicle dealers.
The major benefit is of course the potential to measure the performance of any share that does not have a PE
(due to no earnings). Also ideal for recovery stocks.
Best use is with bigger markets than NZ as it can be used for comparisons of the many stocks within a sector.
Best part of Kennethh Fishers Super Stocks is actually the Appendix 6. Shows PSR s of .03 to .12 for supermarkets compared to .75 to 3.00 for growth/tech stocks
D

 
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