Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 35.53

-1.1%

Nov 14 9:30 AM EST

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To: GVTucker who wrote (102280)	4/13/2000 2:45:00 PM
From: Harry Landsiedel	Read Replies (1) of 186894

GV Tucker. Re: "...then figure that the increased size has given Intel a lot more ability to produce more predictable returns, a PEG of 3x is possible, leading to a PE of 45..." How do you figure a PEG of 3x? It would seem to me that while PEG rates can exceed 1x for some periods, in the long run, the average PE must equal the growth rate. This would be particularly true for a cyclical company like Intel. Perhaps this is why Intel's PEG has only exceeded 1x in one year out of the last 10. If Intel's earnings flow suddenly became more predictable, I could see that it could raise the PEG. While all the new businesses Intel is getting into could raise earnings, it doesn't necessarily follow that the earnings flow will be more predictable. Also, assuming a PEG of 3x over a four-five year period can lead to some unrealistic expectations, no? HL

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