Public Tech Company Valuations are also Bullshit
Most tech companies don’t take stock options into account when calculating employee compensation expenses. Therefore the earnings numbers they publicize are bullshit.
Amazon (AMZN)’s P/E ratio, when calculated using Generally Accepted Accounting Principles (GAAP) is 1192.9. That’s twice as high as any other large-cap stock out there.
Notable exceptions in the tech world include Microsoft (MSFT), Intel (INTC), and Apple (AAPL), which report only GAAP earnings.
How Much Do Silicon Valley Firms Really Earn? –Barrons (if you have trouble viewing the page, try grappling hook)