HappySqurriel on 07 September 2007
| outlawauron said: no it isn't. Nintendo's stock passed Sony number for just a moment. Nintendo is not worth more than all the divisions of Sony throughout the world. |
I would potentially argue that Nintendo is worth more than Sony ...
Sony has high revenues but they also have very high costs so their profits stay reasonably low on the whole; this results in a very low profit per-share ratio and slow growth rates.
Nintendo (on the other hand) has lower revenues and dramatically lower costs which means they have higher profits, better profits per-share and a faster growth rate. When you consider what their profits could be like in 2 years if they continue to dominate in the market like they have been, it becomes clear that Nintendo has a far superior business model and may be worth more.
