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

To: Math Junkie who wrote (50604)	8/15/2001 4:30:39 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 70976

valuation: I get a P/S of 4.2 now = 44/(8.9/0.854) trailing 12M sales 8.9B, through 3Q01 shares .854B stock at 44 The P/S ratio at the 1998 low was 2.2; that valuation today would be a stock price of 44 X (2.2/4.2) = 23 The P/S ratio at the 1996 bottom was 0.9; that valuation today would be a stock price of 44 X (0.9/4.2) = 9.4 In the CC, management said they expect a weak upturn sometime in 2002. Assuming we get dramatic year-on-year sales declines for the next 2 quarters (that is, through year-end 2001), then the stock price will have to come down a lot, just to maintain the current P/S ratio. Have I done my math right?