Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : SLE- Sara Lee -- Ignore unavailable to you. Want to Upgrade?

To: Yogizuna who wrote (37)	1/25/2002 10:35:05 AM
From: Joe Waynick	Read Replies (1) \| Respond to of 41

I’m really scratching my head on this one. According to Quicken.com’s Stock Evaluator, SLE has an intrinsic value of nearly $30 based on analysts’ estimated average 5-year earnings growth rate of 8.69%, yet it’s selling at only $21. I even cut the earnings growth rate to 4.345% - half of analysts’ expectations, and it still has an intrinsic value of $20.25. The company only needs to grow earnings a 4.7% to justify its current price. Is the market saying that it only expects earnings to grow at less than 5% despite what the analysts say? What is your opinion on the lagging stock price? Joe