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Subject:  Re: Let's Refine the P/S Discussion Date:  12/8/2018  2:57 PM
Author:  XMFBreakerTinker Number:  106436 of 115954

I don’t know, I have not been back into the market actively for 3 years yet.

ISRG yes. Appears that NVDA may be yes as well about now. But the multiple is only as good as what it is multiplying and w NVDA that is presently a mower than it was number.

SHOP perhaps. And remember it is not the actual revenue number but what the expected number was that counts. That is how you do it in real time.

I frankly see lots of merit in 12xs position, but as marketcap get larger multiples get smaller. So it is not as straight forward as it sounds because $4 billion marketcap becomes $12 in less than 3 years in higher multiple investments.

Sales force is still 6 to 8x. There is no fixed number as companies are not fungible. If they were you’d pay the same multiple for Qbase as for Microsoft of the like. And yet somehow Apple always had a low multiple past its early days.

Numbers give us contextual information but stocks are non-fungible. The fact that people try to make them fungible by numbers and assuming return to the mean is what creates opportunity for those w the best fundamentals.

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