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 : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: keithsha who wrote (25793)	7/9/1999 3:34:00 PM
From: johnd	Respond to of 74651

80% EPS growth is what I expect. Not wall street. Wall street "expects" 40%. But you know that they are whispering to each other about 60 to 70% EPS growth in 4Q. What they tell in public has tobe taken at face value. MSFT had 1.00 EPS in last 3 Q. If you add 45c that I expect in 4Q, I get 1.45. So I did 1.45 * 80% to get 116 and then a PEG of 1.0. You can do this differently and say 1.35 * (1.35/89 = yrly growth) and get 67.5. But it is also to multiply with a PEG of higher than 1.0. PEG of 2.0 would mean 135. PEG of 1.5 would be 100.