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Technology Stocks : Digital Equipment Corp. (DEC) -- Ignore unavailable to you. Want to Upgrade?

To: dav who wrote (3106)	4/13/1998 5:35:00 PM
From: hossein hosseini	Read Replies (1) \| Respond to of 3276

Thread: What should the fair value of CPQ/DEC combined be? I tried this. CPQ 1998 earning estimate 1.19 Billion + 340 Million for DEC 1998 estimate = 1.53 Billion. Number of shares after the merger 1.735 billion ? Estimated EPS = $.88 Current P/E 24/.88= 27 Considering IBM with a p/e of 17 and HWP with a p/e of 21 why should CPQ/DEC combined have a higher P/E? Am I missing something? I could be way off on my numbers, got them mostly from Yahoo!. Please discuss