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Technology Stocks : BAY Ntwks (under House)

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To: eric podell who wrote (4589)3/13/1998 3:36:00 PM
From: RFF  Read Replies (2) of 6980
 
I've used a DCF model to value BAY and I get a $40+ valuation as well. The biggest variable is assuming a 25% growth rate for the next couple of years and then a slow down. I assume that that's about what the industry will do and believe BAY will actually do better. Also assumed some profitability improvement. Used a discount rate of about 15% because the stock does have some risk.....It's not that hard to get a $40+ value.
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