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Around 1998, Mr. Yardeni, believes, investors apparently started taking those long-term growth estimates more seriously as a basis for valuing technology stocks.
He suggests using all available metrics P/E, PE/growth and price-to-sales ratios when it comes to valuing technology stocks.
Similar(58)
Academic inventors tend to lack the ability of valuing technologies in their areas.
The problem in technologically advanced cultures like America is that we sometimes value technology for its own sake more than we do content.
Monday's deal wasn't the only richly valued technology takeover in recent days.
Q. Going forward, what would you consider to be a rational way to value technology stocks?
And if investors are reassured by the rebound last week, the question of how to value technology companies is likely to remain important for some time.
The past week has seen a shudder pass through stock markets as investors have taken a closer look at some of the more highly valued technology stocks.
The millennials don't value cars and car ownership, they value technology — they care about what kinds of devices you own, Ms. Sheller said.
It made its public debut last May at $38 a share, the most highly valued technology stock in history, but it plummeted almost immediately.
Interest-sensitive stocks such as financials and richly valued technology shares have been particularly vulnerable.
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