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Technology Stocks : Redback Networks, Inc. (RBAK)

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To: player203 who wrote (1524)11/9/2000 12:04:46 AM
From: tinkershaw  Read Replies (1) of 1956
 
Overvalued? What do you think RBAK should sell for. Hey, I know, lets give it a 75 P/E times this years earnings:

That would give it a market cap of approximately $445 million with the consensus EPS of $.04 for this year.

Well, that assures us a ten bagger + for next year because consensus EPS for next year of $.50 gives us a market cap of $5.57 billion.

Of course 75 P/E is less than 1/2 the growth rate but I would love it if stocks came priced like this.

As usual, stocks like this are overpriced for the short-term and underpriced for the long-term, sometimes way underpriced.

Tinker
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