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

To: Moominoid who wrote (80368)	11/15/1998 11:38:00 AM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Now that you have defined the basis for your observation (which is basically that the S&P is properly priced), don't you think that it is reasonable that a company with faster growth than the S&P500 should command a higher price? Let me be more explicit. Michael Dell has forecast that Dell will grow revenues (and by extension I assume earnings as well) at the 40% - 50% range for the next five years, which is roughly five to six times the S&P growth rate. Now assuming a beta of 1.8 for Dell, isn't it reasonable to believe that Dell's for P/E ought to be 3 - 4 times the market forward multiple? TTFN, CTC