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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: chaz who wrote (48528)11/3/2001 1:28:00 PM
From: Seeker of Truth  Read Replies (1) | Respond to of 54805
 
"Let's assume profits grow (by) 40% after that". A time frame would be more enlightening. If it will grow that fast for just one year, 40 times earnings would be much too much a price to pay. If we somehow(??) knew for sure that it would grow at 40% per year for a decade it would be worth more than 100 times earnings. Of course no sensible valuer would imagine that to be possible. But in any case we have to have a 5 year and a 10 year estimate. If such an estimate cannot be made then the stock is a wild gamble.