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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST

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To: Bill Harmond who wrote (7545)2/20/1998 2:17:00 PM
From: Oeconomicus  Read Replies (1) of 27307
 
Selling at less than it's growth rate.

How do you figure that? $40/.46 is about an 87 PE. '98 eps growth is 83% and '99 is 43% by your numbers. Are you expecting the growth rate to rise to triple digits for 2000 and beyond? Even if you use a forward PE, 48, it exceeds the future growth rate. Is this how you value Yahoo too?

BTW, the idea that a PEG ratio of 1:1 somehow means a stock is fairly valued is a perversion of the concept. It is a relative valuation tool, not an absolute valuation tool.

Bob
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