SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: John Trader who wrote (35203)3/22/1998 4:11:00 PM
From: Chuzzlewit  Read Replies (1) | Respond to of 176387
 
John, there are several reasons for P/E expansion, and before ascribing the expansion to excessive optimism it is worth considering them:

1. Interest rates are falling.
2. The rate of long-term growth is increasing
3. The perception of the risk in achieving expected free cash flows has decreased.

Any one of those factors will cause the P/E to rise. The other point is that the P/E's you refer to are backward looking. A better gauge would be forward-looking multiples based on consensus estimates.

Regards,

Paul



To: John Trader who wrote (35203)3/22/1998 5:23:00 PM
From: JUJU1015  Respond to of 176387
 
Hey John.
OFF DELL TOPIC*********

Go to the Ciena thread (CIEN) read recents posts, specifically "defence fund" explains the "Smart Money" thing and think there is a link there.

Judith


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News