No. of Recommendations: 6
So the stock is trading at $320ish, its been a nice run since the summer for sure. Valuations are getting very stretched however.
If you look at TTM we see Revenue at $385B, lets say they come it at $110 B this quarter - that gets the number up to $400B, at $3,950B valuation its approaching 10x sales; which is WAY above its historical trend (of 5-8x). So even on the top end its 20% over.
Earnings the past year came in at $9.39 per share, maybe they get $2.50 next quarter which would get this up to $10.49, at $320 we are over 30x - historically the range has been in the 220-30 range; so right up at the top end.
Are the Revenue and EPS numbers too pessimistic? Are they going to get on a run where they grow revenue to $500B by this time next year?
tecmo
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