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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Kayaker who wrote (57874)	8/12/1998 3:34:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

DELL's P/E should be updated next Wednesday. Remember there is a trailing P/E and forward P/E (for next year). The P/E=76 must be for the trailing four quarters.

To: Kayaker who wrote (57874)	8/12/1998 3:53:00 PM
From: jbn3	Read Replies (2) \| Respond to of 176387

DELL P/E According to WSRN, DELL's earnings for the past 4 quarters were (sequentially) wsrn.com $0.29, $0.34, $0.38, $0.44 yielding a past 12-months earnings of $1.45. When divided into yesterday's closing price of $106.25, that gives a back P/E of 73. Consensus Earnings Estimates are projected to be $2.02 for the coming year (same source). Dividing that into yesterday's closing price gives a forward P/E of about 52.6. Fine. Now IF DELL reports earnings of $0.50 on 18 August, and IF DELL continues to grow revenues and earnings in similar fashion, we need to add AT LEAST $0.05 per quarter to that, or $0.20, giving a projected earnings of $2.22 for the coming year, and a forward P/E of 48. I think that those figures are conservative, considering that DELL's new factories will be coming on line this fall, bringing additional production economies and increased capacity. As far as when P/Es are updated, the E(earnings) component is updated quarterly. It can be updated daily by using the current stock price. I am sure that all of you can name companies with much higher P/Es selling at substantial premiums to DELL. DELLish, 3.