Cisco Systems, Inc. (CSCO) Message Board

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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.04

-1.3%

3:59 PM EST

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To: Dennis Eckert who wrote (22053)	2/6/1999 3:12:00 AM
From: ed	Read Replies (2) of 77400

The reason a stock's PE is low is because no investors in the market want to pay a price over a certain level for that stock. The reason a stock's PE is high is because the investors want to pay whatever price to own the shares of that stock. So, the higher , the PE , the more valuable the stock is. The value of the stock is decided by what price the investor want to pay to own the stock, not by PE. So, the value of the stock is decided y the last trading price of the share.

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