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Technology Stocks : Compaq

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To: hpeace who wrote (11845)12/21/1997 12:53:00 PM
From: Kenneth R Miller  Read Replies (2) of 97611
 
Steve: I just picked this up from Zacks.. an update on earnings for CPQ from Soundview:

CPQ: SOUNDVIEW FINL increased estimate for quarter ending
12/97 from $0.83 to $0.84 on 12/16/97
CPQ: SOUNDVIEW FINL made new estimate for quarter ending 03/98
of $0.73 on 12/16/97
CPQ: SOUNDVIEW FINL made new estimate for quarter ending 06/98
of $0.78 on 12/16/97
CPQ: SOUNDVIEW FINL made new estimate for quarter ending 09/98
of $0.91 on 12/16/97
CPQ: SOUNDVIEW FINL made new estimate for quarter ending 12/98
of $1.02 on 12/16/97
The latest figues I get from M/W are:
$2.67 for 97
$3.44 for 98
$4.22 for 99
That equals growth of 28% from 97-98 and 23% from 98-99
The fair valuations for CPQ stock price would be:
$72 for 97
$92 for 98
$113 for 99
That is assuming that compaq should sell for a P/E of around 27
At todays closing price of $53.50 the P/E is only 20.03
How do these figues compare with yours?
Regards,
Ken Miller
P.S.
The PEG is at .74 .That means CPQ at 53.5 is at 74% of fair value.. That makes compaq a value play at this price!
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