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Technology Stocks : How high will Microsoft fly?
MSFT 492.01+1.3%Nov 28 9:30 AM EST

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To: johnd who wrote (1632)6/17/1997 2:44:00 PM
From: mxyztplk   of 74651
 
johnd,

I wasn't, of course, predicting a PE of 35 in five years. I just considered that a reasonable possibility if its growth rate at that time was in the 30% range. Absent a recession at that time and assuming just normal batting averages for Microsoft during this period, I would consider this a reasonable lower limit.

Earnings of $14 billion per year would place Microsoft, in constant dollars, roughly where IBM was in its heyday. Combining that with what Intel will be earning at that time would almost allow them together to rent the Lincoln bedroom. < g >

Best regards,

Arno
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