E*Trade (NYSE:ET) Message Board

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Non-Tech : E*Trade (NYSE:ET)

ET 16.20

-1.2%

3:59 PM EST

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To: Ed Richmond who wrote (3178)	7/13/1998 2:34:00 PM
From: Moneysmith	Read Replies (1) of 13953

CHECK THIS OUT: ETrade had been sorely undervalued prior to Monday's run-up, said analyst Phil Leigh, of Raymond James & Associates, and the stock still has room to rise, given its low valuation compared to both Internet and brokerage stocks. For instance, if ETrade traded at 4.4 times its book value - the average multiple of the conventional brokerages Leigh covers - it would be worth about $53.46, based on a book value of $12.15 a share that gives effect to the Softbank investment. The book value excluding the investment is $7.53 a share, according to First Call Corp. At the current price of about 30, the stock trades at a multiple of about 2.5 to its new book value - a bargain, according to Leigh. "An Internet brokerage firm has a higher growth rate and a brighter promise," Leigh said. "It should sell at a higher price to book."

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