How high will Microsoft fly? 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 : How high will Microsoft fly?

MSFT 472.22

-1.3%

Nov 21 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Zanga56 who wrote (14518)	1/18/1999 8:08:00 PM
From: t2	Read Replies (2) of 74651

I see Mr. Softie coming in with .65 tomorow. This will give us $2.21 in EPS over the last 4 quarters. I see them putting in about 300 million into the unearned revenue pot or $.12 per share. They have $3.1 billion in that fund so far or $1.20 per share. All together we have: $2.21 + .12 + 1.20 = $3.53 in total TRAILING earning. At a price of $150 the P/E is 42. At a price of $120 the P/E is 34. I like your approach to determining the "true PE" of MSFT but not all of that 3.1 bill is from the last year. I have not looked it up, but I think only 1.4 billion (approx 1/2) would be the last 3 quarter plus 300 million this quarter. Based upon your 65cents estimate (which I think is very realistic),the trailing earnings would be approximately 2.21 + .66= $2.87 per share. This would make the trailing PE about 20 percent higher---still around 46 (sorry I don't have a calculator handy). Still looks great!!!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next