DELL P/E
According to WSRN, DELL's earnings for the past 4 quarters were (sequentially)
wsrn.com
$0.29, $0.34, $0.38, $0.44 yielding a past 12-months earnings of $1.45. When divided into yesterday's closing price of $106.25, that gives a back P/E of 73.
Consensus Earnings Estimates are projected to be $2.02 for the coming year (same source). Dividing that into yesterday's closing price gives a forward P/E of about 52.6.
Fine. Now IF DELL reports earnings of $0.50 on 18 August, and IF DELL continues to grow revenues and earnings in similar fashion, we need to add AT LEAST $0.05 per quarter to that, or $0.20, giving a projected earnings of $2.22 for the coming year, and a forward P/E of 48.
I think that those figures are conservative, considering that DELL's new factories will be coming on line this fall, bringing additional production economies and increased capacity.
As far as when P/Es are updated, the E(earnings) component is updated quarterly. It can be updated daily by using the current stock price.
I am sure that all of you can name companies with much higher P/Es selling at substantial premiums to DELL.
DELLish, 3. |
