MDA - Market Direction Analysis 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 : MDA - Market Direction Analysis

SPY 685.66

+0.2%

Dec 5 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Les H who wrote (74338)	4/6/2001 2:22:08 PM
From: Math Junkie	Read Replies (2) of 99985

"The earnings estimates are falling fast." Are earnings falling more slowly in other tech sectors? Remember, I am not claiming that semis are bargains. I am asking why people are saying they are more overvalued than other techs. "Intel's P/E is now over 40. The P/E based on 2002 is about 25. " Intel is the cream of the crop, and thus cannot be considered typical of semis in general. How do semis' P/Es compare with other tech sectors? And how do they compare to the long term earnings growth rate? "I'm also finding many of the price-to-book ratios are less meaningful as a result of a large amount of goodwill residing on the balance statement, some companies as much as 80% of the book value." Everyone seems to have their own favorite valuation metric. I don't care which one people use. I'm just asking those who claim that semis are more overvalued than other sectors to provide some actual numerical comparisons to back up what they are saying.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next