ECIL - ECI Telecom trading at half its growth rate...
Some simple valuation facts:
Zacks recs: 3 strong buys; 3 moderate buys; 1 hold
Zacks ests: 12/99: $2.34 - 12/00 $2.82 - that is a 21% year over
year growth.
Price $27.69
Net Cash per Share $2.72
Net Price Paid (Peter Lynch method) $25
Therefore you are paying 10.7 times 1999 EPS and 8.6 times
2000 EPS.
That is you are paying a PE of about 1/2 of the growth rate - very,
very cheap.
If the stock were to trade at "fair value" (or 21 times earnings) its price would double.
Anyone care for value?
Anyone know a reason we should stay away from this stock? |
