Company Qtr End Rev($MM) NI($MM) #Shrs(MM) P/S MktCp ($MM)
CSCO 01/23/99 2,827.0 606.0 1,679.0 17.5 198331.9
DELL 01/29/99 5,173.0 425.0 2,750.0 5.8 119796.9
EMC 12/31/98 1,190.8 256.5 538.0 15.2 72562.8
INTC 12/31/98 7,614.0 2,064.0 1,740.0 7.5 227613.8
LU 12/31/98 9,204.0 1,414.0 2,700.0 4.7 171787.5
MSFT 12/31/98 4,938.0 1,983.0 5,400.0 25.8 508950.0
QCOM 12/31/98 941.2 48.5 74.2 2.9 10803.5
SUNW 12/27/98 2,784.4 261.1 810.6 5.1 56943.0
Very Interesting! Another ratio that is telling is the P/S over
Net Margin- that is what is WS willing to pay for high margin
earnings. They are as follows:
Company Net Margin P/S PS/NM
CSCO 21.4% 17.5 81.8
DELL 8.2% 5.8 70.7
EMC 21.5% 15.2 70.7
INTC 27.0% 7.5 27.7
LU 15.4% 4.7 30.5
MSFT 40.0% 25.8 64.5
QCOM 5.2% 2.9 55.8
SUNW 9.4% 5.1 54.2
This chart shows a few things to me;
1-WS loves CSCO
2-WS is paying a lot for Dell's earnings and they are a King
in my mind- seems like a high multiple for a boxmaker
3- Street doesn't want to pay much for a real Gorilla, INTC--
MSFT only has higher margins.
4-QCOM seems to be valued in line until margins increase;
that seems to be the key
Other comments welcome!!
MileHigh |
