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Technology Stocks : How high will Microsoft fly?
MSFT 492.01+1.3%Nov 28 9:30 AM EST

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To: mxyztplk who wrote (1630)6/17/1997 2:24:00 PM
From: johnd   of 74651
 
Arno:

OF course one can never tell. For example will market stop
at 60PE or will it give it even higher say 70 - 80PE. Or
will it take it down to 35 PE. Can't tell.

But earnings power on MSFT is resonably predictable, and I
think they will earn $10+ in 5 years down the road. That being the
case, depending on what market is willing to pay as PE, it can
trade between 340 - 700 (34 to 70 PE)

To earn $10, MSFT will have to earn about $14 billion on $40Billion
in revenues. Or about 3.5x from today. I can see it coming.
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