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Subject:  Re: How long do P/S last? Date:  12/7/2018  4:03 PM
Author:  Texmex Number:  106382 of 114616

Microsoft rev. went from 140M to 1.2B in 4 years (1986-90) and its stock price appreciated 6x and its P/S went down from 5.5 to 3.8.

We can call something under or over-valued. But ultimately it comes down to math - i.e. the stock price is a sum of discounted cash flow. If for whatever reason someone had paid a P/S of 20 for Msft back in 1986 then their return would haven been rather poor.

BTW I hold many of the high P/S stocks we discuss but always curious to learn and improve.
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