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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Stormweaver who wrote (22077)	11/1/1999 3:01:00 PM
From: QwikSand	Respond to of 64865

James: Nothing "justifies" multiples. That's the definition of the stock market, which doesn't have a user's manual. You compared the P/E's. Now compare the revenue growth, the prospects for further growth, the clarity of the companies' respective strategies, and the number of quarters over the last two years that expectations have been met or exceeded. Sun's multiple is a little high, but it should be higher than IBM and HWP. Regards, --QwikSand

To: Stormweaver who wrote (22077)	11/1/1999 3:20:00 PM
From: Charles Tutt	Read Replies (1) \| Respond to of 64865

The forward P/E is a lot lower, IMHO.

To: Stormweaver who wrote (22077)	11/1/1999 4:04:00 PM
From: Stormweaver	Read Replies (2) \| Respond to of 64865

Just for fun I compared SUNW, IBM, HWP, MSFT based on "fool.com" numbers + their PEG calculator: PE (TTM) PEG (FY2000) SUNW 73 2.91 IBM 26 4.3 (had to use FY2001 numbers) HWP 20 0.264 MSFT 61 3.63 <.5 undervalued .5 - 1 : fairly valued 1-1.3: richly valued 1.3: potentially over valued Therefore Sun does have the 2nd best PEG ratio of the group which is maybe a better indicator than plain ol PE. The above highlights HWP as a bargain though ! Cheers James