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.
Biotech / Medical : PLC Systems
PLC 30.130.0%Dec 14 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Charger who wrote (770)4/27/1998 11:06:00 PM
From: K.C.  Read Replies (1) of 1202
 
Charger: Basically, the rule of thumb in the market is that the multiple is based upon the growth in earnings, ie. eps growing at 20% = multiple of 20; 30% growth = 30 multiple. This is real rough, after all investing is a science not an art. So my reasoning is that, if earnings will grow at 50 - 100% over the next two or three years, then a 50 multiple is certainly possible. Look at YHOO and AOL, or even CSCO and MSFT. They all have high multiples because of anticipated earnings growth. There is more to it, but that is a rough sketch.

Good luck trading!

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

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News