Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 122.55

+4.4%

Nov 21 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: jhg_in_kc who wrote (66465)	9/21/1998 8:41:00 PM
From: Chuzzlewit	Read Replies (1) of 176387

A happy and healthy new year to the thread. Now to valuation issues. jhg, these points are trivial. Every business eventually becomes mature. Every business is priced according to investor expectations. Every business either evolves or becomes extinct. Does anybody make typewriters anymore? IBM used to make good money from Selectrics. If you recall, I've been prodding the thread for ideas for the direction that Dell needs to take in the next several years in order to maintain hypergrowth for just such reasons. Second, anyone who prices stocks according to heuristics like multiples of sales and P/E is looking for trouble. Valuation is a much more complicated exercise, and ultimately depends on discounting the perceived stream of future cash flows (which extend forward indefinitely) at a suitably risk-adjusted discount rate. The market is a discounting mechanism that does just that. What this should mean to all of us is that the perception of the risk of maturity, senescence and death is already priced into every stock. TTFN, CTC

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next