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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Mary Cluney who wrote (54535)	4/26/1998 4:02:00 PM
From: gnuman	Read Replies (3) \| Respond to of 186894

Mary, You're fudging again. ;-) You referenced a Barons table that shows the average Nasdaq company to have a P/E ratio of 82.3, (less Intel). You imply that this means Intel should have a higher valuation. But this table really says nothing about what a company's P/E should be. (Here's your table). Market Value Earnings P/E __________________________________________ Nasdaq Composite $2003.3 $29.7 67.5 Intel (INTC) 127.6 6.9 18.4 Nasdaq less 1875.7 22.8 82.3 INTC About the only thing this table tells me is that there are a lot of Nasdaq company's making little or no profits. Would you invest in a company that had a P/E of 82.3? As for Sectors, there aren't that many. And Sectors do have different average P/E's. As for Intel's P/E, many people, (particularly analysts), look at forward P/E's. With the consensus for 1998 at $3.25, the forward P/E is around 25. This is at the high end of the historical range for Intel. When analysts see the next 12 month earnings at $4.00, I think we'll see Intel at $100.