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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (155337)	1/14/2002 3:32:29 PM
From: maui_dude	Read Replies (2) \| Respond to of 186894

GV, Re : "If Niles is accurate in his estimates, then I would say that Intel is pretty expensive at its current price." I understand that it is very hard to accurately predict so far out. But, lets assume he's correct. I am curious to understand why you think Intel is expensive given a 40-50% growth rate. Isn't PE = growth rate, a good measure for evaluation ? Is your issue, with the fact that : 1. I am looking at the forward-looking PE as opposed to PE based on earnings of Y2001 ? Also, I remember you mention a while ago (during the boom time), that it is not unusual to justify a PEG of 1.5 for a large, 'steady' growth company like Intel. Given that, why dont you think Intel is fairly or undervalued ? 2.Or is your concern that 40% EPS growth is unsustainable beyond 2003 for Intel and hence current valuation should be less than growth ? Thanks. Maui.