SectorTalk - Wireless Broadband - MMDS, Satellite, LMDS Message Board

STOCKTALK

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 : SectorTalk - Wireless Broadband - MMDS, Satellite, LMDS

ADAP 0.0502

-1.2%

Oct 31 9:30 AM EDT

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: SpecialK who started this subject	11/2/2000 3:35:11 PM
From: SpecialK	Read Replies (1) of 7

<OT> Had read an article talking about calculating expected growth rates based on valuations. Kind of a reverse calculation. Take the P/S ratio and divide by after-tax profit margin (earnings/sales) and you get the PE ratio. Normal PE equals the growth rate. Examples LSI 9.1B cap, 2.4B sales. PSR=4.3, 14% margin >> 30.7 PE At $29, values the company at 31% growth expectation. Earnings estimate are 1.22 to 1.77 or 45% for the next year. But it has a 21% growth rate estimated for 5 years. SSTI 2B cap, 377M sales PSR= 5.3, 24% margin >>> PE 22 At $22.5, values the company to grow at 22%. Earnings est were 1.04 to 1.86 for the next year. With earnings news, the estimates are for 500M sales to go to 1.1B and earnings of $2.90 next year. Expectations at current price are for 8% growth. RBAK PSR = 100, 5% margins, PE of 2000 PEG=3 EFNT $45, 2.5B cap, 300M sales, PSR=7 11% margins PE = 86, growth next year of 200%, then 40% 5yr growth rate. Est are .83 to 2.56, have $8 cash

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next