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Politics : Formerly About Applied Materials
AMAT 225.18-1.5%Nov 18 3:59 PM EST

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To: Fred Levine who wrote (39971)11/25/2000 1:27:00 PM
From: brunn  Read Replies (1) of 70976
 
P/E ratios for AMAT in the 1990s:

1991 13-24 (prices based on calendar year hi/lo)
1992 16-34 (eps based on October financial year)
1993 14-31
1994 14-20
1995 8-22
1996 7-13
1997 14-39
1998 39-76
1999 25-71
2000 16-48
current 19 (46/2.42)

We currently are safely in the middle of the historic range. The P/E did bottom significantly lower during the 1996 decline. If you waited for a single digit P/E in the 1998 downturn however, you would have missed out. The 70 P/E's probably won't be seen again in this cycle--they were a sign of the overvalued tech sector and represented optimism seen early in a cycle.
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