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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (5262)	8/24/1999 10:28:00 PM
From: Mike Buckley	Respond to of 54805

Greg, I can't imagins that someone hasn't already responded to you in one of the 96 posts I haven't read, but I don't have the time to determine that. QCOM's trailing EPS of $2.05, vs. your 2000 EPS estimate of $5. According to my calculator, that's almost 150% EPS growth. Actually, the $5 estimate is for 2001, not 2000. If I made that mistake, my apologies. That's nine quarters or 2.25 years away from the trailing $2.05. To be completely accurate, using the 2.25 years for annual compounding, it is at an average annual growth rate of 49%. Taking it one step furter, divide the 90 PE by the 49 growth rate and the resulting PEG ratio is exactly 1.84. I wrote that the PE was about two times the growth rate. Now you understand why. Thanks for helping me fill my valuation habit. :) --Mike Buckley