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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: LKO who wrote (2606)	12/19/1997 12:13:00 PM
From: Larry Brew	Read Replies (1) \| Respond to of 6180

LKO, << TI p/e >> I've discovered they're incorrect for TI all over the place. Don't understand. The pe of 8 is really confusing. The pe of 31 would be correct for year to date earnings without the 4th qrt figured in. Easy to figure. It's price of stock divided by earnings. Since the 31 is probably 3 quarters, multiply by .75 for 23.25. I'm using projected annual earnings of 2.17/share. This number will vary some from analyst to analyst. With TI stock at 44/share than it's 44/2.17 or 20.3/share. Another key number if you have access is price to sales. The lower the better. Very relative to the industry, stability of a company, and other factors. TI being below 2 is very good. Anything below 1 deserves a hard look. It says income from sales is greater than stock valuation. Sort of foward looking. Larry