We know big tech stocks are tumbling down, the big question is: Have we hit bottom?
By using the
price-to-earnings multiples as a guide, it seems many big-name stocks still have a ways to go. Using the
Morgan Stanley High-Technology 35
index as a sample of the industry and the market, we compiled data on both the stock price and P/E multiples of the index's holdings, between March 10 -- when the Nasdaq peaked at 5048.62 -- and Nov. 29 (see chart below).
Out of 34 companies in the index with calculable P/E multiples, only 12 have P/Es below 30 -- which is still well above the historical average of 15 to 20. That leaves nearly two-thirds of the tech index in line for more potential pain. Nearly a quarter of the index is still riding P/Es north of 100.
Of the companies in the index, only five have witnessed stock-price gains since March 10. Of those, two companies --
-- have current P/Es above 100. Who's still highest in the stratosphere?
, with a P/E a stone's throw from 400.