RE:RE:RE:UI's share price
kaykay22222 wrote: What's the PE ratio of MTTR? Lol - it still got $2.21Bn - should be valued at zero according to your calculations, right? Net Profit was -$167M in Q3-2021. MTTR is UI's only peer. I wouldn't value UI based on net profit.
People have forgotten about the fundamentals during the post pandemic bull run. Valuations became stretched and people assigned random price to sales/ PE multiples and they justified them because the stock was going up. What could go wrong? Im always reminded that fundamentals never go out of style. One should never ignore price to book, price to sales, price to cash flow when deciding the value of a company. Eventually the market gets it right but it takes time.
Matterport was over valued and arguably it still has a long way to correct itself. I wouldn't look at Matterport as a benchmark for valuation.
How can you justify buying a stock for 20 times sales just because the stock is going up? At 20 times sales and a 20% profit margin you are paying 100 times earnings. Everything has to go right to justify that kind of valuation. I would say that most companies do not become the next Microsoft.
I'm generally happy to see my investments double in 5 years.