SI
SI
discoversearch

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 142.68-2.7%Nov 10 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Peter Greenhill who wrote (71515)10/12/1998 5:03:00 PM
From: Craig Lieberman  Read Replies (1) of 176387
 
Peter,
Re: Anyone want to predict the Dell price for 12th October 2003?!!

I will.
Based on 5 more years patterned growth in the earnings of
15%->15%->15%->10% (over previous quarter's earnings) without any stumbling or slowing down (a bold assumption grant you) results in earnings in October 2003 for the previous 4 quarters to that equal to around $10.50/share.
With a PE of 30 against that (very conservative for the PE), you get a share price of $315/share.

With a trailing PE at that point of 50 you have $525/share.
Any stumbles in the next 5 years would of course invalidate this.
However, you have to figure that it will have just tanked 30% of its value and might be as low as $200/share at that point in October.

The over $300/share price for DELL is not unreasonable considering that a price of $315/share would be actually be $75/share with two more splits. Considering that DELL has split 6 times in 6 years, we might expect at least 2 more in the next 5 years.
If it splits three more times in 5 years, then the $525/share price would actually be $65/share.

Would that my wildest dreams come true.....

Craig
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext