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Strategies & Market Trends : McAfee Associates (MCAF)

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To: Amadeo Zevi who wrote (292)12/10/1996 7:10:00 PM
From: Tim Robbins   of 298
 
An 88 P/E would give MCAF a price of $79. Just so the math. All you
have to do is divide the share price by the expected EPS to get the
actual P/E. A P/E of 88 could only be based on trailing earnings,
which is an irrelevant number. Stock prices are based on where a
company is going and what numbers they are expected to post in the
future, not in the past. The truely relevant number is the P/E based
on 1997 project earnings and growth rates. Ask any broker or analyst.

If you look up the P/E on www.stocksmart.com they post the MCAF
P/E as 53. Just do the math yourself. Divide the current share price
by the 1996 estimate of $.90 and tell me what you get.
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