Maybe it goes to 2 in 2010.

So you say, they both deserve a price to earnings of 10.

Anyway, going back to Price to Earnings, we calculated the

And I think you already get the sense that the lower the

So something very interesting is happening.

Company is 10.

This is 2009 estimates.

Obviously a 6 Price to Earnings of 20 times 2013 earnings isn't as good as a 6 Price to Earnings of 2010, because earnings in the future aren't worth as much as earnings today.

And B is expected to make 4 per share.

That was a bit of a diversion.

Why wouldn't I just pour all of my money?

Which it seems like a really good deal, because now the

The word arbitrage sounds very fancy, but it's actually a very simple idea.

You're making 10 , and that's just to connect the dots.

It was 10.

So it has a Price to Earnings of 50.

And let's say Company B made 5 per share. 5 EPS, Earnings Per Share.

But when you lower the Price to Earnings you are increasing the Earnings to Price.

No, what happened to us, Chris, is that power, it's priced off the margin.

Because you're getting the same earnings for a lower price.

So they both deserve at least a price to earnings of 10.

And the earnings on the bank account in that year were 200.

And the first one is that this whole idea about revenue stream, Steve, I get it.

One is, you could kind of flip this.

Anyway, I want to leave you there.

Is it a license or subscription model?

Price

But one of the things that we always tend to confuse is the difference between a revenue model and pricing.

Then auctions like eBay are another example of dynamic pricing.

Price to Earnings, all else equal and that's a big thing all else equal, the lower the Price to Earnings, you're paying less for something.

And we're going to assume that these apples are completely identical apples.

So archetypes really helped us understand our customers, they value prop, the revenue and some of our pricing tactics.

And you're going to pay a lower Price to Earnings ratio if the company isn't growing.

Over here, this axis right here is going to be the selling price,

But this could happen.

Par value

Redemption

Present value

Present values

Future value

Dr. Price?

Wenneck, Price, Garner.

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

Or if we just wanted to round to the nearest penny, since we're talking about selling something, this optimal profit, this optimal profit, will happen at a selling price of 23 and 30, 23 and 33 cents.

So let me switch colors just to ease the monotony.