Intuit, Inc. (INTU) Message Board
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intu's PE
There seems to be a lot of opinions about intu's
PE. I like to add my. Intu's PE seems to be very
high. Compare to the Computer Software group that seems
to be the case. But one have to remember that intu
generate alot of revenues from internet operations (I
think 25%, exactly how much I cannot remember). I think
intu is not a pure software play but a combination of
software and internet. As revenues from internet
operations continue to become a larger % of overall
revenues, the "value" of the company will
change.
Let's assume (not that it will ever happen anytme
soon), that 100% of intu's revenues comes from internet
operations, and intu is still profitable. What companies
would wallstreet compare intu to? yhoo? ebay? And what
would be the "acceptable" PE then?
Just my
opinion, any comments welcome-
I used to worry about INTU's higher than average
PE, but focused on the P/S ratio which was just
average for the software industry at 5 when I bought at
27, meaning it is about 10 now. I can rationalize
holding for future gains because I believe that INTU has
undercharged for Quicken and Turbotax and will be able to
raise prices in the future.
I also believe that
INTU has great potential abroard and has had much
success with Quickbooks.
It is my hope that INTU
does an AOL / CISCo and ends up with an inflated PE
allowing it grow the company through acquisitions which
are accretive to EPS. -
My guess for a comparison would be another internet software company like CITRIX.
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also, consider that with INTU's cash position,
they could evolve into an incubator for upcoming
companies much like Intel's approach that Andy Grove, their
CEO, took. Now add the slotting fees they are
receiving for advertising on Quickbooks, which, according
to the conference call, will soon turn into revenue
sharing with these companies This is a new source of
future revenue stream. My only worry is if the GOV takes
over on-line tax filing, which I don�t think will ever
happen without corporate help. Why is nobody mentioning
INTU 401K work they are undertaking right now, this
will be a HUGE revenue stream in the future. I heard
similar stuff over on the ORCL board last summer, why you
should SELL now, and I was convinced and left a
considerable amount of $ on the table. I will not make the
same mistake twice with INTU. -
also, consider that with INTU's cash position,
they could evolve into an incubator for upcoming
companies much like Intel's approach that Andy Grove, their
CEO took. Now add the slotting fees they are
receiving for advertising on Quickbooks, which, according
to the conference call, will soon turn into revenue
sharing with these companies This is a new source of
future revenue stream. My only worry is if the GOV takes
over on-line tax filing, which I don�t think will ever
happen without corporate help. Why is nobody mentioning
INTU 401K work they are undertaking right now, this
will be a HUGE revenue stream in the future. I heard
similar stuff over on the ORCL board last summer, why you
should SELL now, and I was convinced and left a
considerable amount of &$ on the table. Won�t make the same
mistake twice with INTU.
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