price/revenue makes much less sense than PE. For example, hardware companies, their revenue are much bigger than software companies because they buy all components and put together systems to sell them. The cost of revenue between hardware and software company is very different. Another example, retail business their price/revenue is much lower, but they only can make tiny of the profit from large revenue(like AMZN).
【在 p*********r 的大作中提到】 : : price/revenue makes much less sense than PE. : For example, hardware companies, their revenue are much bigger than : software companies because they buy all components and put together systems : to sell them. The cost of revenue between hardware and software company is : very different. : Another example, retail business their price/revenue is much lower, but they : only can make tiny of the profit from large revenue(like AMZN).