SI
SI
discoversearch

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 : IBM
IBM 306.44-1.9%Nov 7 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Robert Scott Diver who wrote (6213)3/1/2000 9:59:00 AM
From: David W. Taylor  Read Replies (2) of 8218
 
To get to $60, I am assuming a P/E of around 15, which has been typical for the entire market including IBM until about 3 years ago. If you accept that P/E's of 25 are now warranted, you would get to 25 or today's number.

Remember that IBM is simply the largest generic provider of technology goods and services. With a P/E of 15, it would remain competitive to a fixed income investment in a "risk-free" world at around 6 percent. With a 25 P/E, equivalent to 4%, it is less attractive in that "risk-free" world.

Since we all know that there are risks in owning equities, logic says you should pay a less than fixed income prices, which are risk free in reality.

This is probably less than resonant for most people but it is essential to think this way for long-term survival.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News