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To: Mike Van Winkle who wrote (148055)	11/27/1999 1:42:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Mike, I have seen the analysis of many analysts, and generally, they seem to work on the basis of an assumed multiple of future estimated earnings, generally based on comparable companies or historical multiples. Another emerging approach seems to be to base price targets on a multiple of sales (the most dubious valuation method I've seen so far!). It seems to me that the only theoretically meaningful way to value a company is to value its cash flows (which is what I have done). But that takes quite a bit of mucking around in 10-Ks and 10-Qs. Considering the large number of companies that street analysts are expected to follow, I don't find it surprising that they use a number of shortcuts and heuristics to arrive at their estimates. TTFN, CTC