RE: Why is Bombardier down?This was posted by PIZGZING7 on BBD.A POST ID 1954720.
P/E ratio at 40 very high.
We all love this stock..but always consider the price as it relates to "earnings"..i would never consider a co. trading @ 40-50 times earnings a bargain.You must look at the # of shares outstanding times your $17 us for a total evaluation of bombardier.It may still represent value but a year ago it was really a bargain at 15 times earnings.If you owned a co. with earnings of
$100,000. would you pay $5 million or 50 x earnings to purchase that company?
I DON'T THINK SO.Just food for thought.