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

To: Hector who wrote (104736)	2/24/1999 11:24:00 PM
From: JRI	Respond to of 176387

David...At price of 83...Dell's PE is 78.3 83/(.31+.28+.25+.22) So, yes, you are way off... BTW- PE's should be looked at relative to the growth rate...Dell earnings have grown at a rate of 70-80% p.a. over the last decade... so, a 78 PE would be representative of the past growth rate... Going forward, at its current price, Dell's "PEG" or forward projected growth rate is around 50.. Usually PEG's are calculated on a 5 year forward basis...Last quarter, Dell grew earnings at 49%....let's assume Dell grows earnings at an average of 35% during the next 5 years...so 50/35=1.42....compare 1.42 to other big cap, big growers...Dell compares very favorably...compare it to the S&P 500..Dell compares favorably... If you think all of Dell's rise is comparable (in all facets) to Amazon and Yahoo, I can not help you...To me, it is clear there are vast differences....one being, Dell makes money (lots of it)...but, we'll leave it at that.. I'm not going to deny that the Fed easing has not helped...but there are a lot of other (additional) explanations for the tremendous bull run in recent years......we can take this up if it is of interest... No problem with you being bearish...just post the facts as they are please...there is already enough misinformation out there...