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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: Monty Lenard who wrote (40173)9/28/2000 8:14:37 AM
From: GVTucker  Read Replies (1) | Respond to of 77400
 
Monty, I'll buy all of that, except for the 6% growth rate starting ten years out. Still, even if you double that growth rate, it doesn't change the present value today all that much.

In the end, my conclusion is the same as yours: at best, CSCO will provide low double digit returns going forward. At best.



To: Monty Lenard who wrote (40173)9/28/2000 10:10:04 AM
From: The Phoenix  Read Replies (2) | Respond to of 77400
 
Why did you use a discount of 11% when inflation of is <4%? Just wondering...



To: Monty Lenard who wrote (40173)9/29/2000 4:14:25 AM
From: grace  Read Replies (1) | Respond to of 77400
 
Monty, You probably have to add the effect of revenue growth, which is over 50%. That will add your valuation more reasonable, IMO.

Good Luck