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Staples, Inc. Message Board

  • natelew2002 natelew2002 Sep 5, 2001 8:45 PM Flag

    Staples PE is 155

    with a PE of 155, that means it would take 155 years of flat earnings for the company to earn what you may have paid for the stock today... yikes.

    Plus, the analysts have 18 months target prices that are $16/share. Morgan Stanley says hopefully they can grow 25%.

    With a PE of 155... I believe Staples will test the lows very soon. I did my home work and I am a buyer $6/share.

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    • sincerely speaking, your homework straight-up sucks. Try doing it again and with some professional help IF you ever want to see some money. Try reading the chapter on how to calculate a P/E ratio several times before making a fool out of yourself another time. Good luck with your studies, newbie.

      • 1 Reply to thejudgeofgoodandevil
      • nice try at defending the inflated valuation of SPLS... the reality is the PE is huge based on trailing 12 months.., and the PE on current projected 12 months is still in the 30 range.

        All this while the companys growth rate declerates, margins are being squeezed. Even if you accept the 30, then at this rate it will take 30 years for the earnings equal $15/share.

        Saying Staples is best of breed retailer may be true..but increased competition is brutal. Remember, Fretter, Highland Superstore, Office Depot, Bradlees, Caldors, Zayre, Ames...shall I go on???

        Staples is great, but valuaton in my opinion is too high.... right now.

    • Wrong! You are calculating SPLS' PE on only one quarter's earnings. Actual PE based on Jan. 2001 year-end earnings (.58) and current price ($15.17) is 26.2X. Based on forecast earnings for Jan. 2002 year-end earnings (.65),
      PE is 23.3X. For Jan. 2003 (.78), it's 19.4X. All are half what they should be for a best of breed retailer. Look at HD and WMT!
      Regards

 
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