MFG Fair Value, page-173

Hi @kennethgalbraith

All above stocks will be impacted from higher interest rates and PE Ratios would lower in a high interest rate environment.
Assume a worst case and most of the above will fall back to PE Ratios of approximately 20 times over time (over 12 to 24 months). Similar to what happened in the early 2000's.

BABA is currently at 17 times, so may not be impacted too much.
MSFT currently at 35 times at a share price of $316. If stocks fall back to 20 times Microsoft may fall to $179 over time (based on EPS of $8.95). Only a 43% drop, but this is a worst case scenario based on historical averages (in early 2000's through to 2015 was consistently under 15 times, so 20 times is a conservative drop).

Most growth stocks in the US market are valued at 44 times. Netflix is currently valued at 51 times, even falling to 25 times would be a 50% drop.

If interest rates increase too much, no fund manager investing in stocks will be immune from the impact of lower valuations.

Best of Luck
Lost