| TalonMan said: Think of it this way, if you were to discuss your salary with somebody, would you tell them: - I make $100k a year or - After taxes, 401k, benefits, etc. I bring home $65k a year. :P |
Not sure if you're joking (the :P is throwing me off), but I figure I'll respond as if you are serious.
You forgot to factor in the main thing: revenue - cost = profit. So taxes,etc. are a part of cost, but not the whole cost. In reality, stating your salary in true profit form would be $100k - (rent + food + ...) = $5k (increase in cash + operating capital i.e., checking account).
If you really calculate it this way, you get a much more interesting value: the net cash gain. Thus, profit would be more important than revenue here as well: it's an indicator of how well you are improving your immediate situation. On the other hand, as some one else pointed out, market cap is a much more reliable metric than profit in most cases, since it indicates the value of your accumulated assets, thus taking into account both profit and historical revenue. Of course, since market cap is based on investor opinion (stock price), it can also be completely wrong.
And, of course, don't forget about the importance of factoring in trade volume, so you have some info on the volatility of the stock.
