Max Fakhre

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However, the P/S ratio has one big flaw: Sales may be worth a little or a lot, depending on a company’s profitability. If a company is posting billions in sales, but it’s losing money on every transaction, we’d have a hard time pinning an appropriate P/S ratio on the shares because we have no idea what level (if any) profits the company will generate.
The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market
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