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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.52-0.9%3:59 PM EST

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To: Dennis who wrote (16849)9/7/1998 6:55:00 PM
From: PMS Witch  Read Replies (2) of 77400
 
Denis:

I've tracked CSCO monthly since I've owned it (March 1990) and the PE has averaged 37.5 with the lowest being 16.5 in July 1994 and the highest being about now.

I would think a reasonable price would be to take the average PE of 37.5 and multiply this number times the current earnings of $1.68 giving a price of $63. At this price, you'd probably not be paying too much, especially if you're a buy-and-hold investor.

Frankly, I hope we don't see $63 until after the split, but if we do, It won't be new territory for this stock. (But it might be for some current owners!)

Best of luck, PW.
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