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Motley Fool Hidden Gems / HGS: CNS


Subject:  Intrinsic Value Assessment Date:  1/10/2004  6:14 PM
Author:  macklad Number:  138 of 766

Using the Quicken stock evaluator I did a quick calculation of CNXS intrinsic value. This is the value that Graham/Buffett use to assess valuation in determining what value a company is worth based on earning projections.

Assumptions: 17.5% growth for next ten years; 10% discount rate, base earnings of $8.5m.

The intrinsic value is $30.34 a share which means the stock at $14.52 is still 50% under its intrinsic value.

This seems to provide a very safe basis for future investment. At its current price it only has grow earnings 8% to retain this price.

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