How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 477.09

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9:44 AM EST

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To: Doc Savage who wrote (35218)	12/9/1999 2:05:00 PM
From: John Malloy	Read Replies (1) of 74651

Doc: I didn't say that Microsoft was mature. I said you cannot expect Microsoft's rapid growth to continue unchanged forever. As time goes by Microsoft will approach maturity, growth will slow, and the P/B ratio will fall. You have to allow for those changes when you put a value on Microsoft. Your brother-in-law's forecast was obviously wrong. But are you willing to forecast that Microsoft will never slow down? If I project that Microsoft will continue to grow 41%/yr. forever, then Microsoft's value is infinite. In that case, no price is too high. You should buy Microsoft whatever it costs. John Malloy

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