
MI Rewind: You CAN Beat The Market w/ Brian Feroldi
The Intrinsic Value Podcast - The Investor’s Podcast Network
00:00
The Price to Sales Ratio Is the Only Metric That You Can Look At
The only metric that you can look at is price to sales ratio. If a company establishes product market fit and revenue really starts to grow, like really starts to lake scurve, grow then it's ammetric. Once the company reaches the necessary scale, start optimizing for profits, then the price to earnings ratio becomes useful. Some companies are there right now, would be microsopt apple, et cetera. Their hypergrowth phase is behind them, and now they're focused on generated profits. Finally, you can be in the maturity stage, as i call it, for decades, even a century. Eventually, the company will become disrupted thanks to capitalism, and its revenue
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