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Technology Stocks : CheckFree (CKFR)

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To: g_m10 who wrote (4730)6/2/1998 10:55:00 AM
From: Longterminvest  Read Replies (2) of 8545
 
>>they award companies with P/E in the rage of 60-70 of future earnings.Look at MSFT, DELL, CSCO, etc.
>>A year from now the Street will be using projections for Y2000 to price the stock,

Q 1)Why do you think that 60-70 is a comparable multiple for this kind of business?
Q 2)The consensus estimates for 2000-2001 are let's say $1, and if you apply 40-45 (equal to LTCAGR of 45% for e-commerce) multiple, the stock should be trading at 40-45 in Y2000.

Regards,

-kalpesh
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