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Technology Stocks : Sycamore Networks Inc-(SCMR) -- Ignore unavailable to you. Want to Upgrade?


To: Adam Nash who wrote (1941)3/6/2001 12:09:29 PM
From: ratan lal  Read Replies (1) | Respond to of 2249
 
P/E ratios can be interesting, but just remember that they are a proxy for discounted free cash flow,

unfortunately disc. free cash flow (dfcf ??) is not as readily available as p/e.

Sycamore could have 5x its current revenues in the next 5 years, possibly 10x.

Assuming that earnings grow at the same rate as revenues, will SCMR become a mature company like INTC etc. and be valued at similar p/e's (dfcf)? If so, then its price (valuation) 5 or 10 years from now wont change much from today.