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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (111872)	1/30/2002 1:03:17 AM
From: SKIP PAUL	Read Replies (2) \| Respond to of 152472

You are mixing up discount rate with expected returns. The discount rate is meant to benchmark returns versus competing returns and set fair value for the targeted investment in the current environment. Since I consider QCOM’s fair value to be $80 based on a 9% discount, 25% CAGR over 5 years and 1.5 PEG. I expect 100% capital appreciation just to get to fair value. Yes I do expect explosive growth in the wireless internet business but for valuation purposes I am not willing to pay for more than 25% growth.