And yet you seem to like LVLT, whose PE appears to me to be infinite, since it has no earnings.
Message 14845501
What an enigma you are, twister.
Once and for all:
Value line projects FY 2001 earnings of 1.30 per pre-split share (BTW, they projected the Sept. quarter at .24, and I think it actually came in at .30, so we're off to a good start; Value Line's projection is about a 27% YOY increase, but Sun has been pretty vocal that they'll be above that, too -- Sun's FY 2000 earnings growth rate was about 42%, again using Value Line's numbers. According to Value Line, Sun's earnings growth rate over the past 5 years has been 38.5%.). Even if Sun just makes the 1.30, at a price of 75 that's a PE of about 58. That makes its PEG (ever heard of that, twister?) between 1.38 and 2.15 (or perhaps lower if they exceed VL's estimates, as I suspect they might). I don't think that's out of line for a company of this stature, but you're free to disagree.
Source: Oct. 20, 2000 Value Line (the most recent one).
So, what don't I know about p/e ratio?
JMHO, and not investment advice -- do your own research and form your own conclusions.
Charles Tutt (TM) |
