Altaba Inc. (formerly Yahoo) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bill Harmond who wrote (7554)	2/20/1998 3:24:00 PM
From: Oeconomicus	Read Replies (2) of 27307

I wasn't discussing Uniphase as I know nothing about it but what you have discussed here. I was simply asking how you arrived at you your conclusion since, whether you use 1997 (i.e. trailing actual results) or 1998 (i.e. estimated forward earnings - at least 10 1/4 months are "forward" if they are on a calendar year and all of it is only an estimate), the growth rate does not exceed the PE. In any case, my point was also that the PEG ratio concept is a relative valuation tool that uses long-term growth prospects and current PEs to compare otherwise similar businesses. To use a PEG ratio to justify the valuation of one company in absolute terms is a common, but fallacious application of the concept. Forgetting for now that the market sets PEs in a rather unpredictable way, theoretically there is a lot more that goes into estimating an "appropriate" PE than just the growth rate of earnings. OTOH (as the economists say), if everyone else is doing it, why not use it? Based on this "theory", I can now state that fair value on the S&P 500 is currently somewhere between 264 and 499. Sell everything now! Bob

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next