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Check this out.

If you substitute TTM economic results ($1.25) for GAAP earnings and divide into the stock price (10.80) you get a P/E ratio of 8.64. I think this would be reasonable given that GAAP doesn't reflect reality for this business.

This for a business growing at 20% and one that just gained some pricing power due to market volatility.

If you plug a more reasonable PE of 20 into this and go out 3 years at a reasonable 20% growth rate I come up with a stock price the the $42 range. Thats a 58% CAGR, holy crap!

Am I off the reservation on this or am I kinda sorta working the numbers the right way?


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