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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.25+0.6%3:59 PM EST

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To: StockMan who wrote (14150)5/17/1998 4:38:00 PM
From: Dan Good   of 77400
 
CSCO's 5 year growth estimate has actually increased in the last month (albiet very slightly) if you average the 30 analysts projections. Their 5 year growth is still at 30% (on the average) While LU's is 20%, NT's is 20%, and ASND's is 27%. Comparing the P/E of the same:

LU=46
NT=32
CSCO=44
ASND=38
Considering the growth to the present P/E, CSCO is not the bad buy here.

The price to book of LU is almost twice that of CSCO, while NT and ASND are slightly lower than CSCO's.

As far as the P/E of CSCO and it's forecasts, it would seem like (taking only the data on this one stock) it would be somewhat overvalued. However if you take the networking segment, and even the overall market valuation, we are on the same track.
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