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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (57737)	4/27/2002 7:00:45 PM
From: Steve Lee	Respond to of 99280

The analyst supplied forward PEs might be correct. In the case of AMAT the last 4 quarters yielded EPS of 11.5 cents while the next 4 quarters are estimated to total 37.5 cents. That growth rate of 226% is likely (almost certain) to be unsustainable. That is why the table includes the sales growth rate over the same period along with the concensus analyst view of the 5 yr earnings growth rate. In AMAT's case the sales growth rate is 20% and the analyst 5 yr rate is 22% You are right that the PEs are not solely what we should be looking at, if at all. I prefer to either guess PEs for the next few years (hard to do) or look at price/sales.