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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: John Stichnoth who wrote (28110)	4/22/1999 4:19:00 PM
From: SKIP PAUL	Read Replies (4) \| Respond to of 152472

At the risk of sounding flippant, your estimates may be too low. 5. Discount should be higher than 15%, in the present environment. It's higher than 15% for most companies. 15% is a risk premium of 10% over treasuries!! what would you use? 4. PE of 30 in year 4 too low. Remember, it's a "gorilla" now, and gorillas receive a premium to market. Also, discounting out only 4 years might not be enough. CSCO's pricing discounts out to about 8 years (I've taken a similar approach with CSCO that you've done here). I agree a company growing at 100% should be more than 30 PE. I was being extremely conservative. Where did you get the assumptions for 3 2 and 1? The doubling each year is linear from last year to this year. IMO this should continue or even accelerate. The average profit is a conservative estimate based on a mix of Royalties, ASICS, and handsets etc. 100 million shares is a pure guesstimate about 33 % higher than today. Maybe conservative as QCOM will be generating so much cash that it may be buying back shares.