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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 173.20-3.3%Nov 6 3:59 PM EST

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To: Mike Buckley who wrote (1295)9/6/1999 6:33:00 AM
From: Brian K Crawford  Read Replies (1) of 13582
 
In summary, my long-winded point is that by any traditional definition of a PEG ratio I've ever seen, your calculation is wrong to the point of being very misleading.

OK Mike, you have an opportunity to provide some insight by finishing the lesson...

What are the numbers you would plug in?

1. Base earnings and P/E
2. Future earnings growth...

I start with the pro forma earnings of $.86 from last quarter for base earnings. Something around $4.00 per share total for EPS thru the next three quarterly periods. (It makes more sense to me to look forward rather than back)

I stumble a bit when it comes to estimated future growth rate from this new and far higher earnings base.

Do you think 40-50% annual growth for 5 years out is possible?

Brian
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