The Power of Price to Sales
March 8, 2010
We are not for a moment saying that Quicksilver is better run than Apple.
However comparing their share price returns over the last 3 months shows the advantages of using Price to Sales as one of your valuation tools.
If we compared Quicksilver's (ZQK) Price to Sales ratio with Apples back in December, it would have been like comparing chalk and cheese. Apple's would have been nearly 4.0 while Quicksilver's would have been around 0.1. That's to say investors were paying $4 for a $1 of Apple's sales, while intrepid Quicksilver's investors were paying ten cents in the Dollar.
We can see that not surprising backing the undervalued recovery story in Quicksilver has been far more rewarding than the 'over-believed' story at Apple
