Update: LNKD


A comparable P/E within the technology sector could be somewhere between 18-30 (18.62 is the avg for the tech sector from yahoo finance). With a more generous P/E of 30, LNKD would have to have EPS of $2.94 to justify a price of $88.32. That is a 7260% total growth in EPS. Over a period of 10 years, this would be a CAGR of 54%. Over a 15 year period, this would equate to a 33.19% CAGR.

This is also not taking into account the likeliness of price appreciation of the shares which would drive up the needed justifiable percentage growth rate in earnings.

Will be interesting to see the future of LNKD's valuation.

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