EMC How high can it go? Message Board

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Technology Stocks : EMC How high can it go?

EMC 29.05

0.0%

Sep 15 5:00 PM EST

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To: WTSherman who wrote (4904)	3/16/1999 4:48:00 PM
From: JRI	Read Replies (2) of 17183

You need to look at this on a relative basis......in and of itself, an 80 PE means nothing...it must be looked at in comparison to a company's growth rate....and the P/E, growth rate relationship of other investments.....actually, forward PE are a better place to start... Last I checked, the forward PE on companies in the S&P is at least 21.......earnings for companies in the S&P are expected to grow around 7%....so 21/7 or 3... In comparison, EMC FORWARD PE is probably around 55..and earnings are scheduled to grow around, what 35%...55/35...or around 1.5... So, I content that if you consider EMC overvalued, then you must admit that the rest of the market is much more overvalued...and that is a different argument than saying that EMC is the clearest sign of "irrational exuberence"....actually, there are much more, better examples out there (if you believe such a thing...) Just my 2 cents...

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