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Technology Stocks : General Magic
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To: CanynGirl who wrote (2822)7/19/1998 1:47:00 PM
From: Iraklis  Read Replies (1) of 10081
 
Anybody: General question concerning P/E's.

Are P/E's relative to quarterly or yearly earnings? For example, if GMGC:

1. made 25 Million dollars in a given quarter; and
2. there were 50 Million shares outstanding;and
3. The stock traded at a P/E of 30 times earnings

Then, would the Stock trade for

A. $15 a share (quaterly calculation: 30*25/50); or
B. $60 a share (yearly calculation: 30*(4*25)/50; or
C. Soemthing else?

This has never been clear to me.

Thanks - Iraklis
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