After the drubbing CRUS took yesterday, I thought I'd mention that CRUS's return on equity per share continues to increase over the years. In 2009 CRUS's return on equity per share was around $2.65/share...this last quarter's R.O.E is $11.59/share. CRUS continues to be more valuable albiet not as quickly as some would wish. Any thoughts?
Hi sunrey! Could you tell me where you find the $11.59 ?When I look on the Fool's data http://caps.fool.com/Ticker/CRUS/Stats.aspx?source=icasittab...I see the Return on Equity 19.50 expressed as a percent. From my understanding though, anything higher than 15.00 is supposed to be good.Other things I like seeing there is the LT Debt/Equity and Total Debt/Equity are zero.
I took owners equity, from this most recent quarter, and divided it by the total shares outstanding(approx. 63 mill). For the last four years, CRUS has been trading around 2x ROE/share. According to my $11.59/share, fair market value per share should be around $23.18. I'm guessing we will not see CRUS at $23/share for quite a few months, though. The market wants to see increasing earnings and revenues compared to the same quarter last year...not declining. Long term, I think CRUS will do fine...certainly when considering the present share price.
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