The best way to value a company or at least see if it's valued properly is to do a quick number crunch and it's just amazing how low this company is trading value wise.
Simply take a company's market cap and divide it by it's net income for the year.
In the case of SIGM, they made $70 mill last twelve months and at $21.08 as I write this, the market cap is about $558 mill. (26 mill shares outstanding x $21.08)
So, $558/$70 mill = a trailing GAAP EPS of $7.FRIGGN 9!!!!!
Pepsi is trading at over 20!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Is the market insane!??!?!?!?!?!?!
If SIGM were to come in light and give analyst's a reason to lower forward income estimates to say, $55 mill? Is that fair? (not gonna happen, but just to make the point) SIGM at a GAAP forward PE of 10 would be worth exactly where it's trading at right now!!! ($558 market cap at $21.08/$55 = 10)
Either I have something totally wrong, or the market is giving out the greatest gift in tech land in over a decade!
BRCM right now trades at a TTM PE of 51! ($11bill/$213 mill)
That's a GAAP number, not non-GAAP BS.
If you gave SIGM half of that which is totally unfair considering the growth rate is double BRCM's, SIGM would be worth about $68!!!!!! ($68 x 26 mill shares outstanding / $70 mill income = PE of 25.2)
