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  • lekinsh01 lekinsh01 Dec 31, 2012 9:45 PM Flag

    This is very very very cheap as compared to VMW, and BIDU...$300

    market cap be $45B.

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    • VMW trades at 29x 2013 earnings estimates with a 23% long term growth rate = PEG of 1.26
      BIDU trades at 17x 2013 earnings estimates with a 38% long term growth rate = PEG of 0.45
      CRM trades at 84x 2013/2014 earnings estimates with a 27% long term growth rate = PEG of 3.11

      Based on these figures how exactly do you make the case that CRM is cheap compared to VMW and BIDU? I would love to hear your logic! At the very most, CRM should trade at 54x 2013/2014 earnings (PEG of 2.0) which yields a price of $108. Even if they were to somehow pull off a miracle and find a way to earn $3.00/share in 2013/2014 (50% above current estimates) the shares should only be at $162 if the same PEG ratio of 2.0 is considered.

      Please use some logic and common sense before posting seemingly random thoughts on message boards. You're only hurting your own credibility.

      Sentiment: Strong Sell

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