The data you found is likely outdated. Many web sites do not update these figures until a quarter or so later. I use spreadsheet to keep track of it since its IPO. CTXS now trades at trailing PE 158, forward PE 114 and est growth rate 50%. So PEG of 2 is forward, and so are all of my other figures.
Yes or no about CTXS's growth prospectus. CTXS's growth originally came from the demand for thin-client intranet computing needs and it is still a dominant revenue source and cash cow for the company today. After the backoff of Sun for its competing NC platform last summer, CTXS became the only dominant technology provider and that's pretty much when the stock price took off as well.
Today, thin-client computing is being introduced to a even broader aspect, the Internet and has a new name called ASP. For the same reason that is lower maintenance cost, ASP is becoming increasingly popular. With little revenue come from ASP now, it could add significant license potential as ASP expends into the future. If you look at the way the street is valuing ASP providers like USIX, NAVI and INIT, you see the picture ... Wireless thin-client will always be a nice touch in addition.
Analysts are usually conservative on calling estimates as nobody gets blamed for underestimating on wall street. 50% may prove to be very conservative going into the next few years. I see CTXS to at least double from here year-end which will bring the valuation in line with many other leading software companies like SEBL, ITWO, MERQ, CHKP, etc. |
