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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Profits who wrote (28715)	2/23/1998 8:12:00 PM
From: Kevin K. Spurway	Read Replies (1) \| Respond to of 1572631

Profits, A good DCF analysis is a very valid way of valuing a company. After all, the market value of a company is equal to present value of future earnings. The problem is figuring out exactly what the future free cash flows are going to be, and at what rate (risk level) they should be discounted. In AMD's case, the volatility and uncertainty of the business makes it damn near impossible to come up with accurate estimates of cash flows, even one quarter out. The kind of PE ratio analysis you're using is a good check on a DCF analysis. In cases like AMD's it might even be more accurate. In any case, anyone claiming to be able to accurately value AMD is, quite frankly, full of sh*t. At best its guesswork and opinion. Right now, the consensus estimate for AMD's value appears to be 20.75. Kevin

To: Profits who wrote (28715)	2/24/1998 10:07:00 AM
From: Reginald Middleton	Read Replies (1) \| Respond to of 1572631

You are coming close to be offensive. I already told what the deal was with earnings. If you had any idea of what you were talking about, you would be listening. Earnings don't correlate with shareholder value, so why should I care what the PE's are? You obviously didn't bother to check this out for yourself. <#2 Look at what the Buy Side Analysts are projecting for AMD earnings in 1998 (i.e. Look at what the Mutual Fund Managers are buying)> How does this tell you what buyside analysts are projecting. It sounds more like what Mutual Fund Managers are buying, doesn't it? <#3 Look at what AMD management is projecting for AMD earnings in 1998 and take an average of all three> Why? <Use the PE's, AMD earnings> There you go again. Instead of counting money, you want to participate in accounting games. What cash is AMD projected to make. You do not know what you are talking about. That being so, you should be a LOT more polite.