Microsoft's P/E Pushes Technology to Valuation Hell |
| Bloomberg - Feb 11, 2008 |
Microsoft Corp. shares haven't been as cheap since 1986, the year Bill Gates took what would become the world's largest software maker public. Nokia Oyj is trading at its least expensive level since surpassing Motorola Inc. as the biggest producer of mobile phones in 1998.
Despite the fastest estimated earnings growth of any U.S. group except banks, technology stocks were hurt the most in the global stock market tumble that sent shares to their worst January in at least three decades. Computer and software-related companies in the MSCI World Index were valued at 20.8 times profit on Feb. 6, the lowest ever and down from 91.1 at the start of the decade.
Earnings from more than two-thirds of technology stocks in the Standard & Poor's 500 Index that have reported fourth- quarter results exceeded projections. Analysts forecast profits at companies from Dell Inc. to Intel Corp. will grow 24 percent this year, even as the U.S. economic slowdown threatens to curb demand.
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- Posted: 2008-02-11 09:20:44
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