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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Rainy_Day_Woman who wrote (16581)	12/13/2002 5:24:29 PM
From: Lizzie Tudor	Respond to of 57110

did you net out the cash?

To: Rainy_Day_Woman who wrote (16581)	12/13/2002 5:37:56 PM
From: GraceZ	Read Replies (1) \| Respond to of 57110

So what's it worth? S&P thinks it has a PEG of 1 if it makes 54 cents in '03 and that's below my estimate of 60 cents. A current growth rate in excess of 60% headed down to a nice boring 30% in the next 3 to 4 years. Figure inflation at 2-3%, risk free yield at 4-5%, inflation makes real yield around 1%. How would you value a company with that kind of growth in an environment with such low risk free yields? What is the appropriate premium if the current one is too high?