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>>Mycroft,

interested in how you get US$83 - that's nearly twice the current price ( A$53-ish and AUD/USD cross of 0.92 ). Not saying I don't like the company you understand, just trying to see how you get to the figure.<<

My research is based on patterns that I discovered in analyzing the purchases that Warren Buffett made on behalf of BerkShire Hathaway from 1972-2008. From those patterns I created 10 original ratios and then combined those ratios into what I call the FireRock Element.

This Element is the results of 300 calculations and relies on such things and Price to Free Cash Flow, ROIC. It took me 20 years to create my system and I have had some great success using it.

The system rewards companies with high return on capital along with low debt and punishes those with huge debt and slow growth rates.

Incorporated in there are Fisher Quantitative/Qualitative analysis such as ROE and Net Profit Margins.

So COH has

ROIC of 30%
NPM of 22%
ROE of 48%

Though COH is growing at only 15% its return on invested capital employed is amazing with just $5 per share of LT Debt.

My research has COH selling at 2/3rds of what a private investor would need to come in and buy the whole company.

There is a ton of hidden value in COH that traditional measures don't see. My system has it valued such because it runs on a different set of tracks.

Hope that helps,

MYCROFT
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