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Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: Alan Newman who wrote (3408)	1/9/1998 12:51:00 PM
From: WBendus	Read Replies (2) \| Respond to of 6980

The range of growth 5 yr growth rate estimates on Bay is from 15% to 51% and the average is 26.3%. Technology stocks typically trade at pe of a 120% of the long term growth rate on full year estimates. Applying this valation to Bay would suggest a price of $34.72. I do belive that a better valuation on technolgy stocks is about 110% of forward growth rates on earnings. I think Bay would be farily valued at $31 7/8 and if earnings provide any surprise to the upside, I suspect that we will get that price by the end of the month. Wayde.