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Technology Stocks : INTEL SUPPORT GROUP - the sky is falling!!!!
INTC 37.04-6.2%Nov 4 3:59 PM EST

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To: Burt Masnick who wrote (24)3/13/1996 5:52:00 PM
From: Zachary Fluhr   of 248
 
Burt

I don't understand the justification for a PE (earnings multiple)to be equal to a stock's growth rate in earnings. I believe the average PE for stocks in the S&P 500 is about 15. I don't know what the average growth rate in earnings is for this group. However, I doubt it is as high as 15%.

I chose an earnings multiple of 15 for my Intel calculations because I wanted to be conservative. I am pretty sure Intel's earnings growth rate is higher than the average S&P 500 company.

Please comment.

Zack
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