kiddtrader
in response to
by
posted on
Nov 14, 2007 10:14AM
I use ARM as the comparison company because IMO we have many similarities.
Unfortunately, there is one significant difference: ARM receives a per chip royalty, which is on-going. As their licensees increase production, ARM's revenue increases correspondingly. This can both be measured and predicted, which in turn gives the P/E ratio that it has.
Be well