SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Seeker of Truth who wrote (43534)6/15/2001 3:48:26 PM
From: Mike Buckley  Read Replies (1) of 54805
 
Malcolm,

You can see that about five years of 25% growth are already in [Siebel's] stock price.

Let's assume Siebel grows its revenue 25% year for five years. If that happens, they'll have $5.5 billion in revenue in 2005. Apply a PSR multiple of 15 and the stock price will be about $180 assuming no stock dilution (which is highly unlikely). That's 35% annual growth in the stock price.

To get down to 25% annual growth in the stock price, the stock would be at about $120. Using the $5.5 billion revenue, that would be a PSR of about 3.3.

Those are awfully rough numbers at best, but I'm not sure we can say the market is pricing 25% growth into the price of the stock.

Mike holds on until a PEG of five is reached. Maybe I'm misquoting.

Yep, but that's okay. :) I said I would certainly sell at 5.0. But I didn't rule out selling at a lower PEG, especially if I need the funds to live on.

--Mike Buckley
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News