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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Tomato who wrote (132357)	6/11/1999 12:26:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Tomato, I don't know about "fair value" but on a relative valuation basis here's how I did it: [edit : source of data -- biz.yahoo.com] Dell's YPEG is 1.23, while the S&P's is 3.32. That would argue that Dell is selling at 37% of it's fair price (given its five year expected growth). In order to account for the S&P members that are either not earning profits or trading close to break-even, I reduce the S&P YPEG somewhat arbitrarily by 10% to 2.98, which yields a relative price of 41.3% But Dell's beta is 1.60, which means that Dell is trading at around 66% of its relative valuation (1.6 x 41.3%). That yields a value of roughly $54. The rest is by guess and by golly. TTFN, CTC