Quote from: VolanicEruptor on August 17, 2013, 03:36:21 AM

Quote from: Franktank on August 17, 2013, 03:31:38 AM

Quote from: DeathAndTaxes on August 17, 2013, 03:29:26 AM

Quote from: Franktank on August 17, 2013, 03:26:38 AM

Quote from: DeathAndTaxes on August 17, 2013, 03:21:00 AM

Quote from: GodHatesFigs on August 17, 2013, 12:04:24 AM

I'm well aware of transaction fees; their potential simply does not justify ASICMiner's P/E of 100, especially as their first mover advantage is about to come under fire. The magnitude of the hype around this company is unreal.

How do you come up with a P/E of 100?

P/E = (share price)/(earnings of last 6 months*) = 4 BTC/0.5 BTC -> P/E of 8

*should be "earnings of last 12 months but AM's only been mining for 6 mos.

Correct or no?

P/E is annualized so you should convert the earnings of the past x months to 12 months before computing the P/E.
Still I wanted to see how the person I was responding to computed a P/E of 100. I have a feeling it will be "fun".

In order for AM to have a P/E of 100, share prices would have to be 50 BTC/share. I'm bullish on AM but I don't see that as a possibility (at least in the near term).
EDIT: I can confirm that they've paid 0.50 BTC/share, I've kept record of every single dividend payout since Feb 28.

That would mean a market cap of 50 billion dollars. That doesn't even make sense.. ever..

Why? Facebook was valued at $100 billion using a P/E ratio of ~100 (I think that was part of the rationale anyway). If ASICMiner maintained clear leadership over the bitcoin mining space in the next 2-3 years I think a multi-billion dollar valuation would make a lot of sense. About a hundred years ago, many people didn't think that drilling for oil was very valuable... it's hard to see the Exxon's of tomorrow (Exxon market cap is ~$400 billion).