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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Anthony@Pacific who wrote (75685)4/17/2002 12:56:00 PM
From: Cube  Read Replies (2) of 122087
 
WEBX

For the full year 2002, WebEx anticipates revenues of approximately $140 million, within a range of 70%-75% growth over 2001 revenues, and earnings per share, excluding equity-based compensation expense and assuming a tax rate of 40%, in the range of $0.20 to $0.25.

So even if WEBX hits on all cylinders and makes its numbers for 2002, it will give them a PE of 73. But, notice that the shares outstanding increased by 25% over the same period of 2001. If you assume another big increase in shares outstanding, the PE could easily reach triple digits. This on a company with no barriers to entry and very real very tough competitors.

Cube
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