On Mon, Oct 21, 2002 at 08:03:51AM -0700, Nick Arnett wrote:
> On the other hand, I have no idea what percentage of the economy is
> represented by public companies.  Certainly quite a bit, since there are
> relatively few very large companies that are closely held.  On the other
> hand, there's the rather enormous government sector, which is quite
> difficult to compare with the private sector, especially in terms of ROI.

Here are some numbers that don't necessarily answer the question, but give
some clues:

annual GDP of US, as of 2002Q2: $10,376.9 billion
Wilshire 5000 "Total Market Index" capitalization (now): $8,373.6 billion
US National debt (now): $6,249.7 billion

Stock Price to sales ratio
-------------------------
WMT   1.05
JNJ   5.02
GE    2.06
MSFT  9.19
XOM   1.20
PFE   5.64
C     2.85
IBM   1.58
AIG   2.85
KO    5.52

Note the Wilshire 5000 is an index that tracks more than 5700 US
stocks/companies. I'm not sure what fraction of the public market
that represents, but it must be substantial. But the Wilshire number
looks like it must be a lot less than the total capitalization of all
companies, public and private, since it seems P/S ratios range from 1 to
9 for the biggest companies, and the GDP is greater than the Wilshire
5000 capitalization.


-- 
"Erik Reuter" <[EMAIL PROTECTED]>       http://www.erikreuter.net/
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