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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Savoirman who wrote (12948)	11/29/1998 9:32:00 PM
From: Rutgers	Read Replies (2) \| Respond to of 13925

Creative's fully diluted P/E is about 13......... P/E is supposed to be today's stock price divided by last year's earnings. Thus, $18.5625 / $1.42 = 13.07 What's the current P/E of the S&P? Probably close to, if not over 25, right? So, a 13 looks pretty attractive and that's not even considering Savoirman's forward looking P/E of 9 or less! Another ratio that the fundamental side analysts like to use is Price/Sales. Conventional wisdom has it that anything under a 1.5 is considered undervalued. So, plugging the numbers in: $18.5625 * 90,654 / $1,234,208 = 1.36 < 1.5 In short, Creative appears to be undervalued based upon two of the most time honored ratios. Now, if you want to talk about the PEG, that's a different ballgame....