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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (74792)	1/6/2024 1:11:35 PM
From: Elroy	Respond to of 78476

In January 1, 2020 Dell's PE was 12.47x w/ a forward PE of 10.46x For January 31, 2023 Dell's PE was 14.75x and forward PE 15.6x Just eyeballing it, it looks like Dell went from $25 in Jan 2020 to $75 in Jan 2023. So the stock price is up 200% in three years. The Dell PE went from ~10x to ~15x, so multiple expansion explains 50% of the price increase. So the remainder of the price increase is from EPS expansion. Like....a Lot of EPS expanstion. If Dell was forecast to make $2.50 in 2020 and the PE was 10x, that produces a $25 share price. Today Dell is $74, and the PE is 15x, so it means.......they are forecast to make $5.00? EPS has doubled in three years. With Dell, I don't think you can expect that type of EPS growth. I could be wrong! I was once before in 1993 when I sold Apple at $35....