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Strategies & Market Trends : Free Cash Flow as Value Criterion -- Ignore unavailable to you. Want to Upgrade?

To: jbe who wrote (67)	10/31/1997 12:26:00 PM
From: Pirah Naman	Read Replies (1) \| Respond to of 253

jbe: I trust that you will understand this as a caution on your sources. You have explicitly stated your doubts, so you don't need this, but the illustration may be useful anyway. I am going to give you some figures for cash flow (NOT free cash flow) for CPQ. So they willbe HIGHER than the FCF. All are based upon the current number of shares. 1996 actual (S&P report) $2.30/share 1997 projected (3/4 over) $3.00/share, maybe $3.20/share 1998 projected (value line most recent review) $4.15/share If you try these with the current price, I think you will find it hard to get the numbers you have been quoting. BTW, using S&P and VL, at the beginning of 1997 SUNW was slightly more expensive on a projected P/FCF basis than CPQ. IBM was definitely cheaper. Right now I couldn't tell you about IBM, but SUNW is definitely cheaper than CPQ on this basis. Pirah