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Technology Stocks : Dell Technologies Inc.
DELL 125.97-1.0%Nov 25 3:59 PM EST

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To: John Goode who wrote (31499)2/28/1998 6:56:00 PM
From: Chuzzlewit  Read Replies (1) of 176387
 
John, I'm frankly surprised that anyone would claim "over-valuation" for a stock without having a value in mind. I must confess that I simply don't know how to value growth stocks, although I keep trying. I will say flat out that the parameters you cited: PSR and equity are totally useless. The former because it doesn't incorporate the concepts of growth or profitability or cash flow, and the latter because it is entirely backward-looking, not to mention replete with inaccurate assumptions.

Your arguments have been repeated so often that I hear them in my dreams <VBG>. A company is worth what willing buyers and sellers agree to trade at, so a company is worth what the market tells us. How much is a Rembrandt worth? Just look at the latest auctions. How much is an acre of land worth? Just look at comparables. It's really no different with companies.

Don't feel picked on; I reserve my best stuff for market timers and TA lovers.

Regards,

Paul
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