Wednesday, May 12, 2021

price to sales ratio

 Adam Khoo and Chicken Genius are like the opposite in terms of thinking

One is very bullish on Tesla, the other is not.

Today I learnt from AK about PS ratio

More than 10 is quite over valued

He was the one that I learnt PE ratio of over 15 is over valued.

It is good that I have a bench mark for PS ratio

Tesla is currently around 17 (price around USD$600 now)

for a great company, it is consider ok

If sales double, PS ratio will be reduced to 8.5

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