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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 86.28-0.5%Feb 10 3:59 PM EST

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To: Jimbo who wrote (52259)5/3/2001 8:18:01 AM
From: JakeStraw   of 77400
 
>>...please share with the thread how you arrived at fair value between 10 - 15

Jimbo, For the F.Y. ending 7/01, CSCO is estimated to earn at best .40 for the year. At $15 (the high end) that would give CSCO a p/e of like 38 (which historically is in the ball park for CSCO). Now, if CSCO can grow e.p.s. by even 25% (which is presently questionable) then a stock price of around $10 seems more reasonable to me. Considering all question marks and lack of visibilty surrounding Cisco's earnings & sales, anything over $15/share presently looks very risky to me.
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