INFN PE

Investment Analysis Clubs Saul’s Investing Discussions
1

My brokerage firm is Schwab.

When I look at the PE for INFN I see a share price of $15.39 as of 3/4
and an EPS of $ .36 as of 2/11

these numbers indicate a PE of 42.75.

But on this board I see that the PE for INFN is about 20.3

Is Schwab wrong on this.

Thanks,
Frank

2

Hi Frank,

Schwab must be using GAAP numbers.

Saul

3

Thanks Saul,
I think you are right.
Frank

4

Hi Saul,

I called Schwab and they are in fact using GAAP numbers. The guy I talked to cited Yahoo as a place that supports the Schwab number.

Where do I go to get non GAAP numbers. Pardon my ignorance. I am still learning my way around.

Thanks,
Frank

5

Easiest is often the company’s own press releases.

6

Frank:

Read the Knowledgebase! Not to put too fine a point on it, but that is what it is there for.

Go to INFN, go to Investor Relations, then look in there. It should take but a few minutes.

Brian

7

Thanks Tamhas,

Can you tell me why we are giving more credence to non GAAP verses GAAP.
I thought I knew why but I seem to have forgotten. I need a refresher.

Thanks,
Frank

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8

Yes I agree with you CandyGram.

I have read it but need to keep re-reading it.

Frank

9

PS I owned INFN before visiting these boards.

But my conviction level for owning this stock has significantly increased as a result of the excellent posts presented here.

Frank

10

Again, Knowledgebase. One would think that GAAP was the official number and non-GAAP the fiddled with number, but over the years companies have been mandated to include thing in GAAP which really don’t have to do with the on-going operation of the company. So, we go to non-GAAP where the company will have taken those out as a better representation of how the company is actually doing as its business. Of course, since there are no standards for non-GAAP like there are for GAAP, this leaves us vulnerable to the company’s interpretation, but for grabbing a number it is still a better start. Ultimately, one might want to go in and add and subtract individual items to personal taste and philosophy, but that is a lot of work and provides no comparison to anyone else’s figure.

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11

Thank you Tamhas,

Oh, and CandyGram,

Blazing Saddles is one of my all time favorite movies :slight_smile:

Frank

12

I would only add that most companies who report non-GAAP, for the sake of transparency also report a reconciliation to GAAP so you can very easily see what’s been added/subtracted from the GAAP numbers. If you think something is amiss, it’s very easy to change.

Of course this still does not stop management from playing games. That’s one of the reasons it’s important to listen or read the conference calls transcripts. If you reason to distrust management, invest elsewhere. There are too many good opportunities to risk you money on what might be flaky, distrustful management.

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13

Try this for stocks closely watched by this board…

https://docs.google.com/spreadsheets/d/1H_v6WOjFi81rM3TH9ZHS…

1 Like