Gorilla and King Portfolio Candidates 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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Seeker of Truth who wrote (39347)	2/16/2001 12:30:56 AM
From: Pirah Naman	Read Replies (1) of 54805

Malcolm: It isn't so much a matter of thinking the growth rate will decay at that rate, it is simply a method of modeling that is more conservative. Also, I think that if you (or anybody) actually does the exercise, you will see the results are not so bad. Many times I have read that "CSCO has never been underpriced" yet in the past 3 years there have been at least 2 times I can remember where projecting growth in free cash flow to continue at recent rates for only 4-5 years, and matching the S&P rate of free cash flow growth thereafter, resulted in it being priced under the estimated intrinsic value. Even MSFT met this standard a few years ago - yes, prior to any of the big legal problems. INTC and EMC have been priced well on numerous occasions. And so on. Of course, no estimates that we make are "right" because the future is not ours to see. But the value of this method is that it provides a consistent standard to apply. - Pirah

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next