There is growth investing and there is value investing. One isnt the end-all, and both have merits.
I am more of the growth side of things so i will look at a metric like price to sales or sales growth to get a better idea on what investors are expecting.
My point here I guess is if youre looking at a growth stock, you should be looking at how eps are growing and how they will grow in the future, not the price right now.
Maybe its that i have seen too many scream about p/e on something like NFLX or CRM or AMZN (because they don't back out capex)... And then the stock contiunes to run as earnings grows.
I am more of the growth side of things so i will look at a metric like price to sales or sales growth to get a better idea on what investors are expecting.
My point here I guess is if youre looking at a growth stock, you should be looking at how eps are growing and how they will grow in the future, not the price right now.
Maybe its that i have seen too many scream about p/e on something like NFLX or CRM or AMZN (because they don't back out capex)... And then the stock contiunes to run as earnings grows.