Wednesday, August 24, 2005

Where's my multiple

BIDU numbers came out today... aahhh to have a multiple like that. Based on the .47 projected current year earnings, BIDU is trading at a 179 multiple even after it's drop from the stratosphere.

Try this multiple on for size, US growth stocks!

NFLX: .30 x 179 = $53.70
AAPL: 1.19 x 179 = $213.01
RIMM 1.48 x 179 = $264.92
GOOG: 3.79 x 179 = $605.02

If only I could find a share to short!


At 9:19 PM, Blogger Alex Khenkin said...

The short sounds tempting if it were possibe, but the market is too much in love with this puppy right now - it could go anywhere. As Nassim N. Taleb said, "a price could be any number". I shorted Ebay, with similar multiples, awhile back - very memorable, expensive lesson I got! Even though I was proven correct later...
Small Investor Chronicles


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