Having been one of the great investment success stories of the late 1990s, business software publisher Sage(LSE: SGE) has seen its shares fall to half their high in the last few months -- to a P/E ratio that's still over 100.
Is the company going to continue its history of spectacular growth, making the shares cheap even at today's prices, or is the company fully valued already? Read the arguments below and then vote to decide the winner of this week's Duelling Fools.
The Bull Case
"Sage and Microsoft, having attained pole position in their respective fields, now have a much simpler task of retaining that lead. It's easier and cheaper to defend a dominant position than try and take over such a role. The barriers to entry are strong." more
The Bear Case
"At the end of the day, software is no different to many other classes of products -- it's expensive and time-consuming to produce and the demand for it, while large and growing, is finite and not entirely inestimable. A software company is only worth what it can make in profits, just like any other kind of company." more
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