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Technology Stocks : EMC How high can it go?
EMC 29.050.0%Sep 15 5:00 PM EST

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To: Tony Viola who wrote (8854)1/24/2000 8:18:00 AM
From: GVTucker  Read Replies (1) of 17183
 
Tony, RE: What does Value Line do, take the current price and multiply by X and then Y to get 3 and 5 year price targets, no matter what the stock?

What they do is make an estimate as to the growth rate of cash flow and earnings over the next 3-5 years, then assume that the stock is trading at a similar multiple to its historical range, giving a stock price range in 3-5 years.

2 years ago, Value Line had EMC rated a '1' with a split adjusted 3-5 year target range of 13-20. Kudos to them for having it rated a '1' (been there since 7 Feb 97), but also it tells you how much time you need to worry about their target price range.
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