Cisco Systems, Inc. (CSCO) 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 : Cisco Systems, Inc. (CSCO)

CSCO 81.16

-2.4%

Feb 4 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: SouthFloridaGuy who wrote (45987)	1/4/2001 11:15:48 AM
From: The Phoenix	of 77400

SO, Do you see what's wrong with this thinking??? Think about it.... With the current price to earnings ratio, dividend yields (including share buybacks) are approximately 2.0 percent of share prices. Inflation indexed government bonds are providing a 4.0 percent real return. This means that to provide the historic 4.0 percentage point premium over bonds, real share prices would have to rise by 6.0 percent annually. Unless the price to earnings ratio grows still more (leading to an even more over-valued market), profits would have to grow at the rate of 6.0 percent annually, in real terms.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next