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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Vendit™ who wrote (8131)	3/27/1999 11:35:00 AM
From: Logistics	Read Replies (1) \| Respond to of 41369

Another tidbit::: Courtesy post from another board. <<AOL is a bargain, according to Harris Collingwood, Worth senior financial editor.... For example, at a recent price of $159, AOL was trading at 167 times next year's anticipated earnings of $0.95 per share. Ridiculous under any circumstances, but especially so considering that the stocks in the Standard & Poor's 500 Stock Index are trading at 23 times next year's earnings. Yet a strong case can be made that AOL is actually cheaper than the market as a whole. (Warning: number crunching ahead.) To see how that could be, investors need to factor in the anticipated earnings growth rate of both AOL and the overall market. The consensus among analysts is that AOL's earnings will grow 47 percent next year, versus a paltry 3.8 percent for the S&P 500. The ratio of AOL's current p/e to its anticipated growth (its "PEG ratio") is 3.5. The market's PEG ratio: 6. Conclusion: AOL is more than 40 percent cheaper than the market. >>