| Ail said: Nintendo is currently trading at a P/E of 67 which is exceptionnally high and makes the stock very expensive( close to the price of a lot of High tech company before the dot-com bubble exploded). The only justification for that is the expectation of high growth within the company that puts the forward P/E at a lower level.
So yes, that analyst is right in his analysis of the stock even if his analysis of the expectations of Wii sales could probably be off.......( at the current rate the dollar is trading I don't see how Nintendo could keep doubling profit every year for the next 3 years as the stock price seem to imply...) |
The PE is not 67. A lot of quote sites have the NTDOY forumula wrong since it's an ADR worth 1/8 Nintendo share and priced in US dollars.
