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Comment by emn13

11 years ago

Profit share is a poor measure because it's reliant on expenses, and those are notoriously easy to massage - companies do that routinely for tax purposes. Who's to say what's a cost and what's an investment?

If you must, at least attempt to include accumulated value as part of the equation - so that "fake" costs that are actually investments appear as increases in company valuation. Of course, this still looks good for apple :-), but given the volatility of share prices and what that says about how easy it is to determine "value" it should be clear that the one thing these comparisons cant' be is clear.