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To: Vendit™ who wrote (248)	3/29/1999 1:06:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 419

Vendit, the $12BB is not revenue -- it's free cash flow. As a rough approximation, last year's 10-K had operating cash flow (excluding changes in balance sheet items) of around $266MM. AOL is a solid company, there is no doubt about it. I am simply trying to wiggle in on the question of valuation. Let's assume that my numbers are correct for the moment. And let's assume further that AOL is able to grow its cash flow at 50% per annum for the foreseeable future. That implies that AOL would need to grow at 50% pa for the next 9 or so years to justify today's stock price 9 years from now assuming the current business model. TTFN, CTC