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Technology Stocks : WDC/Sandisk Corporation
WDC 172.26-2.2%3:59 PM EST

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To: Cary Salsberg who wrote (28049)4/26/2005 10:06:12 PM
From: Sam Citron  Read Replies (2) of 60323
 
OT A proper valuation requires an estimate of the long term growth rate of the semi industry, an estimate of the share of revenue allocated to equipment purchases, and an estimate of NVLS growth compared to the rest of the equipment industry. PE is then computed based on corporate growth rate and prevailing long term interest rates.

OK. Could you demonstrate how you would apply an estimate of these parameters to derive a PE?

Sam
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