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Technology Stocks : Inter-Tel INTL Bottom Fishing
INTL 27.80-1.0%Nov 4 4:00 PM EST

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To: Raymond Paynter who wrote (74)7/18/1997 7:30:00 PM
From: Raymond Paynter   of 156
 
Comparison to Octel buyout:

The Octel buyout should give us some indication of what a strategic acquisition of INTL might look like. At least it's one metric of valuation:

Octel, whose last Q revs rose 15%, sold for:

Price / book = 3.9
Price / Earnings = 31.6
Price / Sales = 2.6

INTL, whose last Q revs rose 19%, now sells for:

Price / book = 3.0
Price / Earnings = 34.8
Price / Sales = 1.6

You do the math on the potential price appreciation. I'd still argue that PE isn't the key variable here.

Any thoughts? Is this a fair comparison? I ain't posting these numbers for my health, so debate or I'll go back under the rock from which I came. Thanks.
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