stock2own, some numbers seem way off

[jkaplan]

Let me first say I think this is a great tool and a HUGE timesaver. I just found this last week and am very excited about it but do see one thing that concerns me.

For example, if you plug in Apple (appl) it gives the sticker price of a whopping 1,954 for the settings that are closest to the algorithim described by Phil Town. I have noticed this with several other companies as well where the price seems VERY HIGH.

If anyone has experience with this and can help clarify please let me know.

Thank You!

[joshuat]

It's assuming a earnings growth rate of 50%. That yields an eps of 262/share in 10 years. With 879M shares outstanding, that's $230 Billion dollars of earnings. Assume an insane $100 profit/ipod,iphone, etc, they have to sell 2.3 billion devices in one year to make that kind of dosh . XOM, one of the biggest companies in the world, is only earning 35 Billion in this year of record profits.

Garbage in, garbage out.

[jkaplan]

Ok, so when do we know if the numbers on stock2own are good?

[joshuat]

They are all predictions, there is no way to know.

[bovverd]

Originally Posted by jkaplan

Ok, so when do we know if the numbers on stock2own are good?

Use it as a guide and then when you like the look of something carryout your own valuation.