Valuations: Eye of Beholder....and/or, how thorough was the analysis?:
According to the analysts available through Yahoo finance, my reading is that DPMI will experience an earnings growth rate of 83.5% next year, followed by a five year growth rate of 19.9%
biz.yahoo.com
While MASK will experience an earnings growth of 12.3 %, followed by a five year growth rate of 20.0 percent.:
biz.yahoo.com
Now, I ended up being corrupted by taking an easier route, and becoming a systems design engineer, but back when I was taking a BS in economics, we would apply a little "Present Value Analysis" to those kinds of numbers, just to see if valuations were within reason.
I haven't done so yet, but neither have I seen it in the "analyses" cited recently on the thread. I have no particular opinion regarding the relative valuations of PLAB, MASK, and DPMI, but I am rather suspicious of ANY analysis which first states a conclusion, and then attempts to find the data which will support that result. IMHO, a bit more research, and laying out of the data, is in order before any conclusion of relative value is finalized. I would note that higher projected growth rates are often assigned higher market values for companies...and should be considered as one aspect of any valuation process. Seems there remains some work to do, on someone's part, if the goal is to convince the rest of us that a final conclusion can be made about the proper allocation of our investment resources among the various mask suppliers... just some thoughts... wish I had time to haul out the TI BA-35 and run some numbers... but I gotta pack...see you..
TSO |
