With the recent run up to $250 I thought it might be useful to do a quick check in on valuation.

Lets assume they have EPS of $2.31 this quarter (yahoo lists the avg. estimate at $2.33). This would result in a TTM of $9.58. At $250 it generates a PE multiple of 26. In the past 20+ quarters this value had ranged between a low of 18 and a high of 32.

18 x $9.58 = $172
32 x $9.58 = $306

so on this level this looks like a solid range.

On the Revenue side, they might generate $96B this quarter or $379B of the TTM period. At ~$3,000B this would imply a multiple of 7.9x. Over the same period as above it has cycled between a low of 4.6 and a high of 8.1.

$379B x 4.6 = $1,743B
$379B x 8.1 = $3,069B

In general we have moved from a very attractive valuation level (in the $150s - which I was a very active buyer), to a level that is bordering on the high side.

tecmo
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