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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: johnd who wrote (14908)1/21/1999 8:04:00 PM
From: johnd  Read Replies (2) | Respond to of 74651
 
MSFT's 12 month trailing EPS is now at 2.29
So what PE range will it trade this Q?

2.29 * 50 => 114.5
2.29 * 55 => 126
2.29 * 60 => 137.5
2.29 * 65 => 148.5
2.29 * 70 => 161
2.29 * 73 => 167

Under the current environment, I can see a range of 60 - 73 PE
or 137 to 167. Extremes market downturns like the one we had
in September could take it down to 126. An internet bubble burst
is the biggest risk there.

johnd