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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (1655)	1/15/2002 11:43:40 AM
From: Crossy	Respond to of 95610

Kirk, yes exactly - you could subtract cash (or even book value minus goodwill - or even better just the book value component comprising in fixed interest securities) from the price in PSR or PE ratios. On the debt treatment I started out the same way you suggested (adding it back up). But now I think I would rather not add it up. Why ? For cash and investment I could argue they are not intrinsically necessary to conduct operations. They are an "add up" and should be valued seperately. But debt is usually a prerequisite for the firm to do business - sort of a "business requirement". Correctly the adjustment for debt should rather be a "debt/equity swap at current market price" which would implicitely increase outstanding shares and lower sales per share or EPS rates accordingly.. rgrds CROSSY