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Technology Stocks : Dell Technologies Inc.
DELL 117.44-1.6%Nov 20 3:59 PM EST

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To: Lee Lichterman III who wrote (65510)9/15/1998 9:30:00 AM
From: Craig Lieberman  Read Replies (2) of 176387
 
L3,
RE: How can someone post a story about DELL having a projected growth of 40% while DELL is trading at a PE almost double that rate and everyone think it is good news?

You are making a classic mistake.
DELL is not trading at a forward P/E of 80!
It is trading at a TRAILING P/E of 80. With a company growing as fast a s DELL has, 3 quarters ago earnings are insignificant compared to Next quarters earnings, so the trailing PE will be MUCH higher than the forward P/E. Try using FY 2000 earnings in your calculations. It is much more in line with the projections for 40% growth. (It still may be a little high, but they always underestimate).

Craig
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