It is mostly sufficient if you like to buy low and sell high and your investment risk horizon is beyond a quarter. Others factors such as perceived future growth rates, margins, and debt levels only color this information to a limited extent. For example, if a company grows and makes more money, then its stock price would probably go up. But the P/E ratio would remain similar. In Marvell's case, it didn't make what analysts were expecting. So share prices fell. General bull and bear market trends also play a significant role. For this year, it appears that everyone's favorite commodity, oil, will determine general market trends. If we look at Apple (AAPL), which is a very successful technology related stock over the last five years, we see a current P/E ratio of 20.
MRVL has a stock P/E ratio of about 13. LSI has a stock P/E ratio of about 105. BRCM has a stock P/E ratio of about 21. NVDA has a stock P/E ratio of about 47. QCOM has a stock P/E ratio of about 27. I would guess below 30 is a buy signal and above 35 is a sale signal.
NASA's Orion Flight Software Production Systems Manager Darrel G. Raines joins Planet Analog Editor Steve Taranovich and Embedded.com Editor Max Maxfield to talk about embedded flight software used in Orion Spacecraft, part of NASA's Mars mission. Live radio show and live chat. Get your questions ready.
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