How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 478.53

-1.0%

Dec 12 9:30 AM EST

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To: Gary Yu who wrote (4762)	1/22/1998 5:01:00 PM
From: Ed Schultz	Read Replies (2) of 74651

>> When growth rate is decresing, the stock price usually grow at much slower rate if it's not decreasing. Which is why it is nice to not see the stock price go up today. A PE of 50, even for a great company like Microsoft, is a bit high. A PE of 40 I would be very comfortable with it. Anything in between is also nice. I also believe that Microsoft can grow at 35% per year for the next 5 years. But once it gets to a certain size, the PE will ahve to come down a bit. Hence, look for the stock to appreciate at a somewhat slower pace, say 25% per year. Just my two bits.

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