SI
SI
discoversearch

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 : Cisco Systems, Inc. (CSCO)
CSCO 71.75-0.5%Nov 11 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: bambs who wrote (43154)11/9/2000 2:04:49 PM
From: Tulvio Durand  Read Replies (2) of 77397
 
Bambs, thanks for the clarification on earnings used for PE computation. However, calling the 11 cents as "real earnings" of the proforma 18 cents Cisco quarterly earnings is not quite right. The difference, 7 cents, represents real earnings from investments and real earnings that were used to purchase other companies. All 18 cents are "real earnings".

If you spent your total earnings from stock market investments in buying a new car, would you say you made no "real earnings" from stocks? I think not.

Yahoo's computation of PE based on partial earnings totally discounts the company's increased value from invested earnings. A PE based on proforma earnings more truly reflects correct valuation, IMO.

Tulvio
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext