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Strategies & Market Trends : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: Jon Khymn who wrote (513)	8/26/2000 2:51:54 PM
From: Fundamentls	Read Replies (2) \| Respond to of 19633

Webby, we can agree to respectfully disagree <g> KREM's PE is now around 95 at this inflated(?) KREM price of $80. If we only look at the current PE, yes it is way too high, but looking 5 to 10 years ahead, it seems reasonable to me. The PE already captures the time value of money; the numerator and denominator have to be captured at roughly the same point in time. If you want to look at earnings 5-10 years ahead and compare them to the current stock price, you must first discount future earnings back to the present. When you do so, your logic falls apart I think. Regards, Fundy