Company Name P/E Expected Growth Rate
Keane Inc. 19.46 19.00
Manhattan Assoc. 27.42 11.50
ManTech Int’l A 39.24 17.50
McAfee Inc. 47.06 22.00
Mercury Interactive 25.06 18.50
Microsoft Corp. 22.68 13.50
Moldflow Corp. 23.18 27.00
Novell Inc. 53.51 18.00
Oracle Corp. 18.63 19.50
Paychex Inc. 43.39 15.00
Red Hat Inc. 100.4434.50
RSA Security 23.74 31.00
SEI Investments 22.61 10.50
Siebel Systems 47.64 14.00
Sybase Inc. 30.27 11.00
Symantec Corp. 33.57 15.00
Synopsys Inc. 18.44 7.00
Transaction Sys. A 30.50 17.50
Verint Systems 61.51 26.00BorlandSoftwarehasthelowestP/Eratioof12.77,whileRed
HathasthehighestP/Eratioof100.44.Evenifweassume
thatthesefirmsareofequivalentrisk,thedifferencesinP/E
ratioscanbeexplainedbydifferencesingrowthpotential.To
capture this, the analyst estimates of expected growth in
earningspershareoverthenextfiveyearsforeachcompany
are shown in the rightmost column.