SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Roger Brown who wrote (963)12/8/1996 10:40:00 AM
From: Patrick E.McDaniel   of 176387
 
Roger, I would love to get a grip on a good P/E for Dell.

If Dell does what I expect, they will come in near the 100% earnings growth year on year. I don't pretend to expect that next year but this is what the market will see in February.

Earnings growth around 100%
Revenue growth around 50%

Post split trailing earnings at $2.67/share

at P/E=20, Dell=$53.40
at P/E=25, Dell=$66.75
at P/E=30, Dell=$80.10

at today's price and February earnings, Dell=$56.75, P/E=21.25

So the question of the day, will Dell's higher growth in the past and good prospects for the future sustain the current P/E or move up to the 25-30 range although even higher and lower P/E's are possible?

My position is YES!

That would mean Dell will increase in price from the current $56.75 to the $66.75-$80.10 range in February.

Or in other terms, a 17.6%-41.1% increase by February alone.

As earnings continue to increase although not at the same rate, the price will continue up move up for another good year for Dell.

Wondering about Dell's P/E, Pat
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext