Hewlett-Packard (HPQ) Message Board

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Technology Stocks : Hewlett-Packard (HPQ)

HPQ 25.15

+3.0%

3:59 PM EST

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To: wanna_bmw who wrote (1517)	7/25/2002 8:14:47 PM
From: BelowTheCrowd	Read Replies (1) of 4345

The problem with that analysis is that it's more of the "comparative valuation" BS that got us into trouble in the 90s in the first place. Company X is valued at Y, and company Z is selling twice as much stuff as X, therefore Z should be worth 2 * Y. It ignores the fact that X may just be overvalued to begin with and set up for a fall to coincide with Z's valuation. Or maybe they're both overvalued, but X is more overvalued than Z. Or maybe their both undervalued, but Z is more undervalued than X. None of which would tell you a thing about what kind of returns you should realistically expect from an investment in either one. This kind of analysis is nothing but pure crap. mg

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