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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?


To: Kiriwuth Path who wrote (2218)4/17/1998 11:47:00 AM
From: Tae Spam Kim  Read Replies (1) | Respond to of 16960
 
Let's do some quick valuation fun! :)

Q1 1998 $.50 Management expects 10-20% quarter to quarter growth.
Estimates using 15% growth
Q2 1998 $.575
Q3 1998 $.66
Q4 1998 $.76
Total for Year is: $2.49!

TDFX is currently trading at $33, that's a future p/e of 13 for a company that's growing earnings at over 50% a year using conservative management estimates.

The p/e multiple expands to 50 to match the growth rate, the valution would be: $124.50

Ouch! :)

Tae Kim
TJK Market Letter