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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Bipin Prasad who wrote (1719)	7/31/1998 1:02:00 PM
From: Just_Observing	Read Replies (1) \| Respond to of 4509

SAP revenues grew 61% while PSFT grew 77% in 1st half. So what is more amazing about SAP that it can command a 250%+ premium in stock price per revenue dollar relative to PSFT. Another thing to keep in mind is that most of SAP's revenues are international while PSFT's are based on the US, and hence the currency cannot distort PSFT's numbers. The weakening of the DM from 1.60 to 1.80 can cause SAP's revenue growth to become highly inflated. For example, a 10% increase in the value of the DM will cut the growth rate from 61% to around 50% (assuming 70% of SAP's revenues were international). Currently PSFT is valued at 8.7 billion while SAP is at 76+ billion even though PSFT's revenues are nearly 30% of SAP's.