In your interest.
Online Personal Finance Magazine
No beating about the bush.
Your stock picks are interesting. But it is really surprising to see your magazine consistently use “market cap to operating profit” as a key valuation measure. While most valuation measures, taken in isolation, may not be perfect, this one is most imperfect. It compares what shareholders are presently paying to buy into the company, i.e., market capitalisation with “operating profit”, which...