SI
SI
discoversearch

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.
Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Cary Salsberg who wrote (28049)4/26/2005 8:43:08 PM
From: Dave  Read Replies (1) | Respond to of 60323
 
Cary,

RE: P/S

I do somewhat endorse the P/S ratio for tech stocks especially when you want to buy "beaten down" tech. However, I believe a more robust metric is the EV/S or EV/R. Terminology aside, I believe EV or Enterprise Value is more robust since it takes into account all capital, i.e. Debt and Equity, invested in the company and subtracts cash.

One noted value investor whose name escapes me at the present time believes in buying solid tech companies having an EV/R < .5. Of course, his "other" criteria is that the company has little debt and plenty of cash to ride out (so to speak) any downturn in the industry.

Dave



To: Cary Salsberg who wrote (28049)4/26/2005 10:06:12 PM
From: Sam Citron  Read Replies (2) | Respond to of 60323
 
OT A proper valuation requires an estimate of the long term growth rate of the semi industry, an estimate of the share of revenue allocated to equipment purchases, and an estimate of NVLS growth compared to the rest of the equipment industry. PE is then computed based on corporate growth rate and prevailing long term interest rates.

OK. Could you demonstrate how you would apply an estimate of these parameters to derive a PE?

Sam


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News