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: Tony Viola who wrote (35905)	1/1/2000 1:01:00 PM
From: taxman	Read Replies (7) \| Respond to of 74651

Microsoft Corp. alone accounts for about 12 percent of the index's value. Microsoft was up 69 percent this year through Thursday. But a repeat performance seems unlikely. Overvalued At about $117.50, Microsoft sells for 79 times the past four quarters' earnings. Its own president has said that the stock is overvalued. Analysts expect Microsoft's earnings to grow at a 25 percent rate the next five years. That's admirable if true. But what happened to the old rule of thumb that a stock should sell at a price/earnings ratio approximately equal to its growth rate? If Microsoft carried a P/E of 25, it would be about a $35 stock right now. quote.bloomberg.com and If Microsoft carried a P/E of 12, it would be about a $17 stock right now. regards