posted on
Oct 14, 2006 01:02PM
The P/E has been bugging me also, for the reasons you state. You'd think, based on our current circumstance and potential, it'd be up around 50 instead of 15 (pre-Friday per Yahoo Finance).
My question for the board (since I'm clueless) is how does the P/E multiple get adjusted? Is it merely a relection, based on current PPS? I don't think so, as the whole premise is about the future potential. So how is it adjusted? I can't believe it's a "tail wagging the dog" type thing - something/someone has to prompt the change.
Any insight from the aware will be appreciated.
TIA,
SGE