Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Here are some numbers for you:

Market cap as of close today: 904 mill

If the stock price increases 25% per year it will double in 3 years.

Market cap in 3 years: 1.8 bill

Assume P/E ratio of 30

Earnings in 3 years needed to get 1.8 bill market cap with a P/E of 30: 60 mill

Earnings last 4 quarters: 41 mill

Result: Assuming a P/E of 30, earnings must grow 14% per year for 3 years to yield a market cap of 1.8 bill

If you look at the last 10Q, earings for the 6 mths ending Sept 2000 were 24 mill, compared to 6 mill for the same period in 1999, for a percentage increase of 275%.

Please, check my numbers and let me know if I made a mistake. However, assuming my analysis is correct, Barra looks pretty cheap to me.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.