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To: ownstock who wrote (23221)12/29/2002 8:11:08 PM
From: Cary Salsberg  Read Replies (1) | Respond to of 24042
 
RE: "I try to gauge the future sales of the company, as well as the margins..."

When you have concluded that the future looks bright, how do you determine how much to pay for that future?

Estimates of future sales and margins and current prices give you P/S on future sales and PE on future earnings (sales*margin).