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Technology Stocks : All About Sun Microsystems
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To: Alex Chun who wrote (23517)11/29/1999 3:25:00 PM
From: Vikas Deolaliker  Read Replies (2) of 64865
 
Well there is another way to value a company than just the DCF or cash flows. Use the real estate as an example, you can value a house as a multiple of yearly rental income or you can value a house based on its location and uniqueness

Same is true with SUNW. Location in marketing is positioning. SUNW is positioned most favorably in comparison to other server vendors to gain from internet infrastructure. The uniqueness of SUNW is another factor to take into account. The question I would ask is how many billions would you take to duplicate SUNW. Remember, it is one of the few companies to have everything in house from Language, OS, System Software, Processor and HW System.

If you take into account the above qualitative factors, then you can arrive at an valuation which is much higher than the quantitative valuation.
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