Advanced Micro Devices Inc (AMD)

[rupert]

Appropirate p/e for AMD?

From the Smith Barney industry report

"Given that most semiconductor companies are now solidly profitable, we tend to favor P/E as the main valuation metric for semiconductor stocks. Looking at a list of the 40 top semiconductor stocks, semiconductor companies are trading at 27x forward earnings, essentially at the median of 26x forward earnings and below the median value of 34x. Our second favorite valuation metric would be P/S, currently at 4.44x, which is trading in-line with the average of 5.16x and median of 3.50x for the semi industry."

So AMD $45 on January 18th 2005?