Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
FoolishCop and Mac750 (and other lurkers) -

I was basing my valuations on the following assumptions:

3 stage DCF model
5% growth for years 1-5
5% growth for years 6-10
2% growth for years 11 and on
11% discount rate
$42million in net cash
13.6 million shares
$0.55 /share current earnings

This yielded $7.70 in net present value from the earnings plus $3.09 in cash for total of $10.79/share

Using a 15% discount rate drops the value to $8.29/share

I don't always run valuations like that, I just happened to use DCF this time because I felt like the sales were relatively predictable.

Disclosure: I own a small quantity of shares that are currently at a small loss. I am planning on selling, based on this evaluation


Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.