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Broadcoms' 2008 foward p/e is 13.9 x earnings.The CURRENT industry/sector that BRCM is in has a 2008 multiple of 16.7x earningsThe S&P is currently trading at 13.6x earnings.Broadcom's current p/e to growth ratio is 0.07 at today's price.The CURRENT industry/sector that BRCM is in has a p/e to growth ratio of 1.2x.So by any metric you want to use, BRCM is undervalued at these prices. With $2.4 Billion in cash and no debt, this stock is easily a $30 stock by year end.I believe a premium valuation is warranted for BRCM...around a 25x multiple for 2008 which brings my price target for BRCM at $31.25/share.That's an 80% increase from current levels. And by the end of 2008, I believe I will have made over 80% gain on BRCM stock.Blue ray sales are skyrocketing seven fold right now!
LOL those forward S and P earnings numbers are gonna be slashed.that 13 and change forward pe is a pipedream.