Paul, your comments
<<Intel reported that net income was $1.97/share in 1974, with
<< 10,016,000 shares outstanding.
<< That makes their PE at 39.5 at the high, and 7.7 at the low. << Quite a swing, I'd say!
<< By the way, the $15.50 per share price in 1974, correcting for << splits (10,016,000/880,000,000) computes to $0.188 per share. << Quite a bargain, in hindsight!
got me to musing. Here's my musings:
3Q 1996 profit/92 days = last Q profit/day
1.312 billion/92 days = 14,260,869/day
TOTAL 1974 profit = 1.97(10,016,000) = 19,731,520
Ratio: 19,731,520/14,260,869 = 1.38 days 1996 3Q profit
= TOTAL 1974 Profit
1996 market cap = 110(880,000,000) = 97 billion
1974 market cap = 15.50(10,016,000) = 155 million
Ratio: 1996 market cap/1974 market cap =
97,000,000,000/155,000,000 = 63
Last 12 months profit/Total 1974 profit =
4.65 per share(880,000,000 sh)/1.97 per share(10,016,000 sh) =
4,092,000,000/19,731,520 = 207
I see that the ratio of current market cap to 1974 market cap is only about 1/3 the ratio of current profit to 1974 profit. Seems to be some room for this gap to close for a "fair" valuation.
Any comments? |
