Sonki,
I think that DELL's trailing earning is 1.69, instead of 1.65 shown on the Yahoo! site. I got this number from several other services, like first call, Zacks. Do you have any insight on the difference?
DELL is projected to earn 2.78 for FY 99, which would give DELL a forward PE of a little less than 40 using current stock price. My prediction is that DELL probably is going to round up with 2.90. Anyway, DELL is not cheap for sure, but it all depends whether people want to pay a high premium for a company that has a super history of earning and revenue growth, who also happens to be a leader in its sector. BTW, compared with MSFT, CSCO, and LU, DELL is not expensive, especially considering that its growth rate is almost twice as much as those industry leaders.
larry! |
