Chip Morris of T. Rowe Price uses ''practical p-e ratios'' for such profitless 
wonders as Amazon.com:

THE STEPS                                                    THE MATH

1. Find the company's current market value--         161 million x $118 3/4*
the number of shares outstanding times                    = $19.1 billion
the price per share.

2. Multiply the most recent quarter's                     $294 million x 4
sales by four to find                                      = $1.2 billion
a current annual ''run rate.''

3. Divide the market value by                               $19.1 billion
the annual run rate to get                             ÷ $1.2 billion = 16
a price-to-sales multiple.

4. Divide this by your estimate of                         16 ÷ 0.07 = 230
the biggest net profit margin the company
may enjoy, say, 7%.

5. Were Amazon.com profitable now, its ''practical p-e'' would be 230.


* MAY 28 CLOSING PRICE