gga

SunPower Is a Semi - It Deserves to Be Valued Like One

Interesting comparision with those mature semiconductor stocks. But not exactly apple to apples. Unlike SPWR, those companies cited are not funding sigificant capacity or expansion or exhibiting similar consistant earnings growth. (Yes, they once did so and were once rightly rewarded with higher valuations due to their then current/projected growth.) Looking at published data, I find the consensus earnings estimate for SPWR's current FY (Dec 08) to be $2.31/share, equaling a current P/E of 32. With the current growth rate (despite their current high levels of capital investments), the PEG ratio is still less than 1.00, indicating the company is fairly, or even perhaps, undervalued as some might argue. The forward P/E (using FY09 ests) is just under 22. Of course there are the risks as you mentioned but SPWR has a recent history of exceeding estimates, unlike some of those semi's you mentioned. And lest anyone here forget, LTBH investors do not value any stock only on last year's numbers, but more so on projected current and future revenues & earnings.