Magically transforming 25% of revs into profit, it is still more expensive than aapl by 3x
Take last Q revs muliply by 4 = 3.15billion
divided by 142 million shares = 22 dollars revenue per share.
now let us give it a magical 25% efficiency in turning revenue into profit for 5.55 dollars per share.
Apple trades at a PE = 11,
if sails forth had impossible to attain 25% profitability its PE would be 31
SailsForth has a market cap eight times its revenue. At its current growth rate it will not be on par with its sector in price to sales, for another seven years. Who in their right mind pays a projected seven year price?
first, i am loving that "SailsForth" moniker. Although Larry Ellison is the big sailing guy.
AAPL has to pull another rabbit from its hat to keep growing. The market has the opinion that it is far from certain to do so. Also, either margins or unit volume cannot remain so glorious forever. Disclosure: I am long AAPL, and bought more at $504.20 recently. I think they have another year of glory ahead, especially in China.
OTOH, CRM is a dead certainty to grow to a 10-billion-revenue company within a few years. They are now the world's leading supplier of IT. I SAID IT FIRST!!!! Perception will catch up to reality soon, but the pros already know it; that's why it is 100% (approx) owned by institutions.