Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Harry Landsiedel who wrote (85156)	7/9/1999 1:53:00 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

Harry, RE: My recollection is that EPS growth rates for the S&P range from 8%-10% and the S&P is trading for around 22-25 times earnings. That would make the 3.7x high but not totally outlandish. The average estimate for the 5 year EPS growth rate of the S&P is 7%, according to Zack's. The average estimate for earnings for 1999 is $48.38. As I write this, the S&P is at 1398, which would translate to a PE of 28.8, and a PE/growth of 4.13x. If you use Dec 2000 earnings of $51.13 (and in reality, no one has any idea what earnings will be next year) that decreases the PE/g to 3.9x.