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Technology Stocks : Dell Technologies Inc.
DELL 117.44-1.6%3:59 PM EST

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To: Lee who wrote (56565)8/6/1998 11:07:00 AM
From: Chuzzlewit  Read Replies (1) of 176387
 
Lee, there are really only three issues that affect a stock's 'intrinsic' value. These are:

1. the stream of cash flows;
2. the long term risk-free interest rate; and
3. the risk premium associated with the stream of cash flows.

Only the risk free interest rate can be objectively measured. So when dealing with with valuation issues anyone claiming stocks to be over or under valued in essence is claiming that he has a different assessment of either the stream of cash flows or the riskiness of those cash flows.

So it is arrant nonsense to claim that the value of a stock is too high regardless of the earnings report.

Does this count as my first Cat Call?

TTFN,
CTC
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