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Politics : Ask Michael Burke

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To: accountclosed who wrote (39504)12/16/1998 8:12:00 AM
From: Skeeter Bug  Read Replies (1) of 132070
 
roq, a rule of thumb used to be to pay a multiple equal to the growth rate. especially for large companies in large industries. with interest rates lower then maybe a small premium is justifiable.

what is csco's growth rate? 20%? maybe a 25 pe is justifiable as long as one feels they actually will continue to achieve that growth rate. and i wouldn't consider that cheap. rather, fair value and i like to buy undervalued companies. i'm a buyer of csco at 25% of their current price - assuming i think they continue to grow.

skeets.
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