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 : Santa Cruz Operation (SCOC) Going Up?

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TESTU Yvan who wrote (287)4/24/1998 3:09:00 PM
From: Wil Faller   of 656
 
Don't agree. For a hi-tech company the multiple on earnings is typically related to the growth rate among other things.

Currently analysts are looking for SCO (SCOC) to perform as follows.

Growth 30%
Forward Earnings ('99) $0.45

Given this growth rate, for a software company a PE of 30 is conservative.

But for fun, lets say 30 times $0.45. That still is a stock price of $13.50.

This stock is undervalued.

Take into account that a lot of software companies with slower growth rates are selling at more than 30 times earnings, and you get $15 or higher.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext