Dell Technologies Inc. Message Board

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Technology Stocks : Dell Technologies Inc.

DELL 128.05

+1.2%

1:17 PM EST

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To: Huntress who wrote (51451)	7/15/1998 4:13:00 PM
From: Chuzzlewit	Read Replies (4) of 176387

Huntress (is that for Diana of Greek legend?) P/Es were always a very poor way of valuing stocks because they were necessarily backward looking. When you invest in a company you are buying a slice of the future, not the crumbs of the past. And to get the biggest slice you can, you want to know how it will grow. So a lot of people use PEG ratios (the forward-looking P/E divided by the growth rate) but even here you have problems because the price of a stock is sensitive to long-term interest rates. The best I can do is to use a normalized PEG -- the PEG of the company divided by the PEG of the S&P500. If you do that you will find that Dell "normalized PEG" is less than 1.0 (in other words, buying growth is with Dell is cheaper than buying growth with the S&P500). TTFN, CTC

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