My rough earnings calculations for DELL FY99 and stock price projections are:
At 40% revenue growth, DELL will do $17,257,800,000.00 in sales for FY99 (ends Jan 99).
At 7.7% (FY98) net margins, that's $1,328,850,600.00 in earnings.
At 738,000,000 diluted shares, the earnings would be $1.80 diluted.
$1.80 times 45 (p/e) would be $81.00 share price in Jan 99. ($90.00 at p/e=50)
At 50% revenue growth, DELL will do $18,490,500,000.00 in sales for FY99.
At 7.7% net margins, that's $1,423,768,500.00 in earnings.
At 738,000,000 diluted shares. the earnings would be $1.93 diluted.
$1.93 times 45 (p/e) would be $86.85 share price in Jan 99. ($96.50 at p/e=50)
Does this look right to you?
**None of this takes into account the stock buy-back program |
