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

To: t2 who wrote (17209)	3/4/1999 1:35:00 PM
From: johnd	Read Replies (1) \| Respond to of 74651

For some Reason, MSFTs trailing PE ratio band has been expanding for last 5 years. For example this Q, it has traded between ~60 to 76 PE. During 1998, MSFT had a trailing PE ranges of 48 - 73. Looking at trailing PE ratio charts, there seem to be higher lows on each low i.e. the stocks trades at richer multiples purely based on this trailing PE ratio factor. But I think some of this is understandable and explainable. (a) There is more and more deferred revenues and EPS (b) MSFT is becoming a larger and larger gorilla and thus commands a higher valuation (c) The interest rate movements over the last 5 years I am just posting my observations