Posted by RainT > 2017-05-07 11:49 | Report Abuse

PE of Elsoft now at 20....don't you think is too high !????

Posted by bursagoinglong > 2017-05-07 14:05 | Report Abuse

Hi RainT. Thank you for commenting.

A PE cannot be taken on its own without reference to other companies which conduct roughly a similar business like Elsoft i.e. the design and manufacturing of automated test equipment.

Other similar players' PE would be:

Vitrox - PE pf 21
JF Technology - PE of 100
MMS - PE of 18

I would think Elsoft's PE is slightly above average but in line with other industry players.

I wont be too concerned with PE per se. PE fluctuates from time to time. If PE is a concern to you, it is better to take into account the average PE over a longer period of time.

My paramount consideration is whether a business is sound with strong future growth. I think Elsoft fulfills the above criteria.