How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 473.99

+0.4%

Nov 24 3:59 PM EST

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To: SC who wrote (43752)	4/28/2000 12:45:00 PM
From: Jacob Snyder	Read Replies (2) of 74651

re: the stock will be comatose for 2-3 years Do the numbers. If the stock doesn't go up for the next 3 years, and the company grows EPS at its historical rate (or anything close to that rate), then you end up with an unreasonably low PE 3 years out. The worst that could happen, is the PE stays where it is, and the EPS goes up by 25%/year for the next 3 years. That, IMO, is the absolute worst-case scenario. And that's a good return: from today's levels, the stock goes up 25%/year.

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