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Subject:  Re: RIG vs ATW Date:  12/10/2010  5:43 PM
Author:  TMFGebinr Number:  95 of 1275

ATW appears to have better valuation metrics on P/E, margins, growth etc. Why RIG over ATW?

Hi Anurag,

Good question. The answer basically comes down to what is being expected by the market for each. I looked at the two earlier, right after the initial purchase ( Looking with the latest numbers, here's the comparison:

TTM FCF $2,485 $119 M (TTM to 9/30/10 for both)
# shares 319.0 64.4 M
Share price $71.29 $37.46
Discount rate 15% 15%
Expected growth 1-5 yrs 6.5% 22.7%
Expected growth 6-10 yrs* 3.3% 11.4%
Terminal growth** 0.0% 0.0% (kept the same between the two)
*While 1-5 years is varied by the Excel Solver, 6-10 years is set to hal