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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: 16yearcycle who wrote (40394)	12/4/2000 1:52:30 PM
From: Kirk ©	Read Replies (1) \| Respond to of 70976

RE: Not the point.....he has the fed's valuation formula and his site has a great number of charts.... a point I will make is the formula is bogus. IT only looks at one year of growth and yet you should do PEG analysis on 5 yrs of growth.. WHO cares if the earnings will be the same next year for two companies making the same now? I care what company will have higher earnings in 5 yrs. One growing at 10% and another growing at 25% per year after a single year of equal growth will have significantly different earnings in 5 years. The same would apply to an index. We might be low growth for a year, especially when comparing to a very robust year, but longer term, the numbers will be different. The model is far too simplistic but interesting just to see where we are. Kirk