Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 223.95

+1.7%

Nov 21 9:30 AM EST

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To: Drake who wrote (21249)	7/9/1998 12:24:00 PM
From: 16yearcycle	Read Replies (1) of 70976

"Rick, I concur. AMAT's 5 year average PE is 21.4 -- times Alex Brown's 1999 estimate of .97 = $20.76/share. How do you justify a price of $30?" Trough earnings receive higher than average pe, peak earnings receive lower than average pe. i don't make the rules, but this is how the game is played. the real point is that peak earnings were about 1.80. Multiply that by 8-10, and you see the problem with a 29.25 share price. We are staying high because the whole market is at record valuations.

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