Z- I know you've posted your details many times, but could you put up your current best estimates of DLT net income for last Qtr, and DD net income for last Qtr (everything but DLT, including heads)?
Thanks a million
FYI, in my view a blended PE IS the way to go, but I think 23 is still too high. DLT will not ever be valued as a standalone.
I know your analysis well on spinning it off to get a better DLT multiple. Fact is, they're not going to spin it off, nor IMHO should they. While it might lead to a higher valuation short term, it would be held to current growth rates long term and when they inevitably slow, would end up like JBIL, or COMS, crucufied for saying their income would eventually slow to 35%. (admittedly COMS has other issues, too).
That said, QNTM should, even in the worst of times, get a multiple somewhere between the "historical DD norm" and your DLT/DD blended PE.
BTW, I disagree with Vanni's assessment that, because SEG and WDC are currently at about 9X current PE (an afteraffect of very bad times) that we should use that as the norm. I believe the historical norm is closer to the 11 you idendified. I would say DLT gets discounted to 50-70% of its PEG, to create a safety net. I know you've posted your details many times, but could you put up your current best estimates of DLT net income for last Qtr, and DD net income for last Qtr (everything but DLT, including heads)?
Thanks a million |
