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Technology Stocks : Intel Corporation (INTC)
INTC 43.48+8.6%Dec 2 3:59 PM EST

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To: yard_man who wrote (68744)11/19/1998 11:00:00 AM
From: L. Adam Latham  Read Replies (1) of 186894
 
tippet:

Re: I agree with the author that it is rather absurd for INTC to have a market cap that is larger than the whole PC business's annual sales...

What's your reasoning (and Fleckenstein's) for judging the absurdity of a market cap by comparing it to one year's sales of an industry (is it just a hunch, or is there a precedent for doing it this way)?

The traditional practice of estimating the value of a company by calculating the discounted present value of all future years' projected cash flow seems more logical and methodical, but probably would require Fleckenstein to do a little work. :-)

Adam
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