Quote:
Originally Posted by ScottFromCalgary
*cough* Nortel *cough*
Just kidding guys I'm sure that won't happen to you.
Seriously though RIM has an outrageous P/E multiple and is wildly overpriced by just about any metric IMO.
In regards to the talk about RIM being the largest company in Canada, perhaps it narrowly beats RBC in market cap, but take a look at real money:
RIM Q2 Revenue: $1.37B
Net Income: $287.7M
Royal Bank Q2 Revenue: $5.48B
Net Income: $1.395B
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Now why don't you compare the relative growth rates?
The problem with your flawed argument regarding the P/E multiple is that RIM was wildly overpriced a few years ago too... since then the stock price has gone up by 500%... good call Scott.
The fact is... according to the market RIM is priced just right. P/E multiple by itself means very little... you also must consider the growth rate.
