Re:Google will pay SpaceX $920M per month for compute
by BobbyJo on Saturday June 06, 2026 @01:56PM
(#48427326)
Generally < 1 is low, between 1 and 3 is in the middle ground, and > 3 is high. However, that all depends on margins, which is why people generally use P/E or forward P/E rather than P/S to compare multiples. Issue here being that P/E is nonsensical for unprofitable companies or companies with very low margins. Spacex's P/E after Google pushed them into profitability by a slim margin would look absolutely stupid.
I would also like to point out, that on a forward P/E basis, AAPL is quite overvalued compared to historical norms, but basically every tech company is right now.
Re:Google will pay SpaceX $920M per month for compute
by marcosdumay on Saturday June 06, 2026 @02:11PM
(#48427439)
Most companies have a P/S of 1 or 2, almost all have it bellow 4.
A few segments of the economy are known to have low revenue/investment ratios, and companies there get P/S up to 7 or so.
Then, very few companies have people betting on their growth so much that their P/S get as high as 15.
And then you have literally about half a dozen exceptions on the ones S&P tracks that get higher than that.
Re:Google will pay SpaceX $920M per month for compute
by burnte on Saturday June 06, 2026 @03:23PM
(#48428082)
Nothing about Apple is representative of a normal business.
Re:Google will pay SpaceX $920M per month for compute
by rbanffy on Saturday June 06, 2026 @03:26PM
(#48428110)
It’s an interesting phenomenon: being Apple is one of their key sales drivers. The brand is worth more than the business itself.
Re:Google will pay SpaceX $920M per month for compute
by doctorpangloss on Saturday June 06, 2026 @01:29PM
(#48427081)
You're arguing with people who have no idea what they're talking about.
Do you mean low? AAPL has a ps of 10.