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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end?
YHOO 52.580.0%Jun 26 5:00 PM EST

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To: sea_biscuit who wrote (3397)3/13/2001 11:36:43 PM
From: Mad2  Read Replies (1) of 3543
 
Valuation is a bit complex, however liquidation forms a floor of support, valuation over ande above that is based on the DCF of future revenue streams.
A conserative way of looking at this is trailing earnings.
mad2
BTW Is it safe to infer that the p/e at the bottom in 1932 was due to "a problem with the size of e portion"
If so the point made in WS is all the more valid, in that in 85-88 unemployement was higher than it is now which implies the economy had greater room (or capability) to grow than in 2000 when the p/e had increased 4 fold.
Thus we should be discounting the "p/e" more today (as compared to the 85-88 period because its less likely the economy can grow inflation free.
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