Pixar Animation 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 : Pixar Animation

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: HECTOR RUBERT who wrote (2541)	7/6/1999 2:26:00 AM
From: Adam Nash	Read Replies (1) of 3261

Pixar cannot maintain the abnormal growth they will see in earnings over the next 12-18 months long term, so they don't deserve quite the P/E you are describing. Don't get me wrong, I am long Pixar, and have been for a couple years. However, I prefer to use the discount method for valuing Pixar. I tend to see Pixar as having approx. $2.50 in earnings within 3 years, and I use a 30x P/E on that and then discount back to the present. That method has been giving me mid-40s for Pixar for 1999, assuming a 25% discount rate to my cash flow projections. That assumes Pixar's films (TSII and Monsters) make approx $120M domestic box office ea.) - Adam

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next