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Non-Tech : Any info about Iomega (IOM)?

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To: Franco Forghieri who wrote ()8/15/1996 10:21:00 PM
From: Tom Trawinski   of 58324
 
Latest PEG = .549.

Here's how I calculated IO's latest Price/Earnings to Growth (PG) ratio. Let me know what you all think.

Current price: $15.9375
Current P/E: 15.9375/.29 = 54.9
EPS last 4 quarters: $.29
EPS 1997 estimate: $.82
1.5 year growth rate = (.82/.29)^1.5 = 99.96%
PEG = 54.9/99.96 = .549

This means IO is trading at about 1/2 its fair value based on its 2 year earnings estimate. As of today it should be a strong buy. Any thoughts?

Tom
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