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

To: Dell-icious who wrote (59580)	8/20/1998 11:20:00 PM
From: jbn3	Read Replies (1) \| Respond to of 176388

re P/E Thread, I have a recommendation: if one is going to discuss P/E, please specify whether trailing P/E or forward P/E is being discussed. And if you're not using them yourself, be aware of the meaning differences if someone else uses the term. The trailing P/E is determined by dividing the current price by the sum of the stock's earnings for the past 4 quarters. The denominator in this problem is $1.66 until the split takes effect, and then it will be $0.83, which it will remain until the next earnings announcement. Trailing P/E will change daily based upon the current price of the stock. The forward P/E is determined by dividing the current price by the consensus analyst estimate for the coming year. It also changes daily according to stock price and also as the various analysts change their estimates. Analysts and other bears are fond of throwing out the words "high P/E" without amplification. Yes, DELL has a lofty trailing P/E, but IMO, the highest possible forward P/E is about 49 (assuming quarterly earnings of $0.55, $0.60, $0.65, and $0.70 for a denominator of $2.50). YaBaDaBa DELL, 3.