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No. of Recommendations: 2
Parkite -

Thank you very much for you response and yes it was my first attempt at a valuation of a company! (I do work in corporat finance though so I am probably more familiar with financial statements than others who are starting out).

I agree that the 12X-15X multiple seemed high. I used it because that is what was used in the write-up by Matt Richey and I didn't know the logic of how a multiple should be chosen. TomG's 133% trick is very helpful - thanks!

I agree with you that CNS seems to be a one-product company for now but the price seems attractive to me because at the current valuation it appears to have any downside pretty much baked into it. Therefore, the risk is limited in my opinion where the upside could potentially be pretty high if they produce another winning product.

Not to mention the tiny 2% dividend that you could collect while waiting.

I haven't decided whether to buy or not but I am still going to keep my eye on this company. Thanks for the feedback.

TrueFriend
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