“Red Hat may be the leader among Linux providers, but it remains far from clear that the company can increase revenues substantially enough to justify its price. The company sports a $8.6 billion market cap — and that’s after dipping 63% from its high-water mark. Even if Red Hat stays at its present valuation, after five years of 100% revenue growth, its price-to-sales ratio would stand at 6.4, which is higher than Computer Associates (NYSE: CA) or IBM (NYSE: IBM) .
The market has priced extremely high expectations into Red Hat. We’ll have to see much better performances in the future than we saw this year.”
to beat a dead cliche in the mouth – i resemble that comment!