SDL, Inc. [Nasdaq: SDLI] Message Board

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Technology Stocks : SDL, Inc. [Nasdaq: SDLI]

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To: pat mudge who wrote (1624)	6/8/2000 6:22:00 PM
From: The Ox	Read Replies (2) of 3951

I'm curious? SDLI is expected to grow earnings from 2000 to 2001 at a 40% rate. Revenue growth is expected at a 65% yoy rate. Assigning a 65 multiple on the forward earnings expectations of $1.70 gives a 'fair value' price target of $110/share. Using traditional model of earnings growth rate times earnings would reduce the 'fair value' model to $68/share. This assumes no bumps in the road going forward. Double either multiple factor and we get fair values of $220/share and $136/share. Very obviously I'm missing something here. This latest run has been incredible, no doubt about it. I just wonder if this one isn't getting a little bit ahead of itself? Michael

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