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

To: one putt who wrote (14239)	5/1/1999 8:52:00 AM
From: Jim (Hijacked)	Read Replies (2) \| Respond to of 41369

Craig, I also noticed that pe for aol is wrong. Let me put in my 2 cents on PE. I usually take the most recent quarterly earnings and multiply by 4. Then figure out an approximate pe. For example: AOL just announced 11 cents for the last quarter. So by extrapolating with no growth, you get (11x4) 44 cents. Based on stock price of 150, you get a PE of 340. Now, as you can see, this is not based on past year, or past 4 quarters. Also, it doesn't take seasonality into account. It is a mixture of past, present, and future. Although a conservative number since no future growth taken into account. I feel this is a better number for comparison purposes, assuming the company is still growing at a fast rate. Obviously you can figure out a reasonable growth rate and re-do the calculation by changing the 44 cents to a higher number, and get a lower pe based on future growth. Good Luck.