InfoSpace (INSP): Where GNET went! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : InfoSpace (INSP): Where GNET went!

INSP 95.04

-4.0%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Offshore who wrote (6339)	5/28/1999 1:58:00 PM
From: Eylon	of 28311

> OK now listen up. I read this in Business Week last week. It went something like this. If netstock company profits and sales like Ebay grew at 50% per year for 10 years and then 25% for the next 10, their stock would be worth 10% of where they are now according to normal EPS ratios. You can say all you want about "this is the new wave", but let me say this. > I see this kind of valuation in many places. The problem is that it looks like the writers never did the math. Here's my try, I've never study economics so I may have some errors but this is simple math. If you grow 50% per year for 10 years and then 25% per year for the next 10 years it will come to *537 or for Ebay where the last Q earning was 0.05 it means earning of $107 per share. take an average PE of 24 and Ebay stock price in 20 years should be $2578 or 14.7 time the current price of $175. Compare it for the some 24 PE stock with 12% growth in 20 years this mean 9.6 time earning and 9.6 time stoke price if the PE stay 24. So according to my analysis Ebay is worth now $268 :-) Eylon

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next