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To: Thomas George Warner who wrote (367)12/29/1997 3:28:00 PM
From: David RubinRespond to of 118717
 
I have to disagree. Sure, SDII's trailing PE is around 20, but their forward PE based on 1998 estimates is only 16. The current 1998 estimate of $1.71 does put growth at about 25%, but I expect this estimate to be revised upward since SDII has consistently beat estimates by nearly 10%.

Even if the $1.71 estimate stays, a fair PE going forward is 25 times 1998 estimates, which would put the fair value of the stock at $42.75.