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Technology Stocks : Broadcom (BRCM)
BRCM 54.670.0%Feb 9 4:00 PM EST

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To: Tulvio Durand who wrote (1402)4/26/1999 2:45:00 PM
From: Black-Scholes  Read Replies (2) of 6531
 
Last time I checked, all marketable securities still used cash as the currency of transaction. The purchasing power of an internet stock - once sold for $100/sh. for example - is no greater than the purchasing power of a steel stock - once sold for $100/sh.

ALL securities, regardless of the industry in which the company operates (steel, airlines, internet, chips (potato or silicon)), are ultimately valued the same way - the present value of all future cash flows discounted by the appropriate rate commensurate with the project's risk.

SO -- growth rates, no matter in what industry, are ultimately valued the same way.
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