NWRE valuation:
Book value - $89,125,000
O/S 16,090,000
Book/shr - $5.54/shr
share price - book value = growth premium
$11.15 - $5.54 = $5.61
05' exp. eps .47
06' exp. eps .57 , thatts %21.2 growth y/y
assume a conservative %12 eps growth and you're only paying for 8 yrs of earnings, %20 and its about 6.66 yrs, so a fair foward 06' multiple(when u factor in the book value) is more like 9 or 10 x earnings w/ double digit eps growth
* news that leads me to believe record Revs, growth, and increased guidance in next 10Q which would make the price multiple almost embarassing on this TECH
- Thu, Jul 14, 2005
• IDC Reports Neoware Increased Thin Client Market Share in Calendar Q1 2005
- Neoware issues guidance for record quarter
bizjournals.com (Wed, Jul 13)
• Neoware Sees 4Q Revenue Up 29 Percent
AP (Wed, Jul 13)
Factor in a more respectable multiple for a tech hardware company growing at double digits, lets say 20 x .57 + $5.54 = $17/shr, and thats w/ no upward guidance...
