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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: borb who wrote (2285)	3/27/2000 11:52:00 AM
From: Professor Dotcomm	Read Replies (2) \| Respond to of 3902

You don't really need much software - but you do have to take into account analyst earnings estimates in case your own ideas are way off base. With a consensual set of estimates, you can then construct a future earnings stream which you then can apply to its present market price. A safer way is to arrive at a 'weighted'earnings number. This is made up of the current year (value 3), last year and the next year (value 2) and the year before last and year after next (value 1), divide the three numbers by 9 and you should end up with the weighted earnings. If you are really confident and know the industry and the company well, you could estimate, solo, what you think the company will earn at a given time in the future. There is no magic to this, it is just a reflection of what the market feels a specified company is worth. (Incidentally, you will discover that some traditional companies will never get to reasonable multiples because the industry in which they are operating is not growing fast enough - this is why, I think, that Coca Cola has been so disappointing).