LEX Personal computers are, let’s face it, pretty commoditised affairs. Apart from a few bells here and whistles there, they are all of a muchness. Some are household names, others more popular with business users. Even equity investors see little difference – although their share prices tell different stories.
Consider the two largest US-based PC makers and Intel, whose microprocessors power most of the computers they produce. Hewlett-Packard and Dell – once the world’s biggest manufacturer but now third after Taiwan’s Acer – both trade on 12 times next year’s earnings, and Intel is only slightly more richly valued on 13 times. At a discount to historic valuations and the broader market, this suggests that sub-par growth prospects for all three companies lie ahead.
