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To: JakeStraw who wrote (7047)3/15/2001 1:11:32 PM
From: Crystal ball  Read Replies (1) | Respond to of 10934
 
NTAP should be $133-$138 based on EPS GROWTH RATE 498.14% and PEG ratio 1 to 6 =0.17, as all future PRICE performance is the EXPECTATION OF FUTURE STREAM OF EARNINGS discounted to the current market PRICE you see, that means that PEG ratios (P/E compared to Growth) and EPS GROWTH RATES are all forward projections based on future earnings estimates (Which I feel are conservative for this stock anyway), as opposed to the P/E you are thinking of which is a trailing, as opposed to forward looking calculation. Your calculation shows what the price SHOULD HAVE BEEN, not WHAT IT OUGHT TO BE. Put NTAP in the [Quotes] box above left, and then go to financials, and you will see the Growth chart as follows:
GROWTH RATES
__________1 Year_____3 Years
Sales % 100.16_____ 83.78
EPS % 87.72_____498.14

You take the P/E and divide by that 498.14% to get your PEG ratio of 1 to 6. The price is OVERSOLD and UNDERVALUED. It should be 6x higher. It was $152 just 6 months ago. NTAP is a SRONG BUY.
I am,
Truly your$,
-Crystal Ball