SI
SI
discoversearch

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 : Cisco Systems, Inc. (CSCO)
CSCO 73.99+3.1%Nov 12 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RetiredNow who wrote (13100)4/5/1998 6:29:00 PM
From: Frank Yashar  Read Replies (2) of 77398
 
A very successful friend working on Wall Street
once told me to always look at the forward P/E
ratios. In other words, the P/E ratio calculated
with the next 12 months expected earnings. He said
that is a better predictor and explanation for
stock prices, in general, compared to the P/E
calculated using the last 12 months earnings.

To say that Lucent is insanely overpriced
due to a P/E ratio of 170 shows a
misunderstanding of how the market prices
companies. Lucent (LU) is trading at
a forward P/E ratio of 40 as of a few days
ago. My reference is:
investor.msn.com

Now, one may reasonably argue that Lucent is overpriced
or fairly priced, or the market is overpriced or
not (I personally think the market is overpriced and
I have moved more toward cash), but to say that
it is "lunacy" for Lucent to trade at a P/E
ratio of 170 is simply not doing the analysis correctly.

Frank
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News