doublet83

eBay Watch: True P/E Ratio, Listings Update, Business/Casual Seller Mix

There are several things wrong with your so called true p/e: 1. you are taking out the cash from the 'p' but you're not striping out the benefit of interest income from the 'e' 2. you don't take into account their low tax rate which is not sustainable over a long period of time 3. when comparing it with an S&P multiple, you don't give its ratio the benefit of the cash those companies will generate, not do you strip out the impact of cash.