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Technology Stocks : Dell Technologies Inc.
DELL 136.48+3.3%12:37 PM EST

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To: Satellite Mike who wrote (43090)5/19/1998 1:14:00 AM
From: Chuzzlewit  Read Replies (3) of 176387
 
Michael, where do you get this stuff from:

To justify the current share price and market cap, they should make .75.

The fact is that to justify the current market capitalization investors (both longs and shorts, buyers and sellers) need to agree on the price. They have done so, and have valued the company at around $95 per share. The mechanism they use for that valuation is the stock market. But if you need to be analytical about it, the PEG for S&P 500 is around 3. The PEG for DELL is around 2. If one were to simply normalize DELL's price based on PEGs, I would guess it would be somewhere in the neighborhood of $140.

TTFN,
CTC
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