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Technology Stocks : Intel Corporation (INTC)
INTC 33.62-4.2%3:59 PM EST

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To: Paul Fiondella who wrote (77641)4/3/1999 1:25:00 AM
From: Barry Grossman  Read Replies (1) of 186894
 
Paul,

look at the P/E ratio and tell me why INTC doesn't get traded higher

I recall a discussion on this thread some time ago that argued that each company's free cash flow has a lot to do with it. The lower PE vis a vis a software manufacturer like Microsoft, whose capital expenditures are minimal, is justified because Intel has huge continuing capital expenditures in order to keep their technology progressing at the present rate.

Barry

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