Tom, maybe Dan hasn't taken the new P/E's for a spin...
Old: "Micron Technology Inc. (NYSE:MU) has one of the lowest PEs of all Semiconductors."
New: Correct me if I am wrong, but this morning I saw the following estimates for fiscal '01:
$0.50 (Lehman Brothers);
$0.47 (Banc of America); and
$0.33 (Credit Suisse First Boston).
So, at $40/share what forward P/E do you come up with?
I get the following:
80 for Lehman;
85 for BOA; and
121 using CSFB's numbers.
Take your pick, but any way you slice it, she is waaay overvalued. To be fair, I am not a big P/E fan, but they are coming back in vogue. In addition, I don't know what Dan's estimate is for fiscal '01, maybe he thinks they are going to earn, e.g., $4.00/sh, which may explain his bewilderment.
Please note that this is to say nothing about earnings growth, i.e., PEG valuation metrics. We won't talk about silly things like growth any more, do we?
Has anyone seen any revenue est numbers for 2001 or 2002? I'd like to crunch some forward P/S numbers... |
