How does Costco make money? Is it a good company?
The businesses of Amazon and Alibaba are almost the same in all aspects, so the two are highly comparable. Just as Amazon’s stock price is not very good this year, and Alibaba has collapsed by more than 40% now, let us compare the two e-commerce giants in China and the United States.
Rule 40. Investors are most concerned about the growth of the company and how much money it can make. In particular, the profitability conditions for companies listed on the US stock market are relatively loose, unlike Taiwan or China, which highlights corporate profitability as a necessary condition for listing.
Let me start with the conclusion. The valuation method of U.S. stock investors is mainly based on the Price-to-Sales Ratio (P/S or PSR). It also talks about the P/E ratio, but it does not pay as much attention to the price-to-sales ratio (please note that I mean relatively speaking, the PE ratio is of course … Continue reading “Valuation methods significant different between US and Taiwan investors”