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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (7557)	2/20/1998 4:48:00 PM
From: Oeconomicus	Respond to of 27307

Now follow me [WH]. This isn't too complicated. You are using growth from last year's, but a PE on this year's earnings. By that logic, any company expected to go from a loss or breakeven last year to a profit of any size this year should have an infinite PE on those forward earnings. This is absurd. The correct calculation is Current PE (i.e. trailing twelve months, because it's real, in-the-bank earnings - the base from which they grow) over Long-Term EPS Growth (i.e. 3-5 years out, sustainable growth). If you want to value stocks this way, I could care less, but I'd suggest that you spend a little time on the Fool site. At least they figure PEG ratios correctly, even if they do use them inappropriately at times. Best of luck.