[FoRK] RPE and understanding company performance

Jeff Bone jbone at place.org
Fri Jun 18 05:17:16 PDT 2010


Small correction: I said RPE (revenue per) rather than EPE in the  
subject; ytpo, but both are interesting, particularly together. The  
difference between the two is also interesting.

Given either R and RPE or earnings and EPE you can back into the  
number of employees, and you can then get  the per employee  
contribution to market cap.  This can be used at any point in time to  
evaluate different companies within a given sector relative to each  
other, or various averages across whole sectors to compare sectors.

The latter makes it easy to spot anomalies: individual companies  
within a sector or whole sectors that may be "overheated" etc.

E.g. as I recall, back in '99 or so eToys.com shortly after its IPO  
stood out like a sore thumb for some time on this metric...

jb 


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