Marchex, Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Marchex, Inc.

MCHX 1.767

+1.6%

Jan 9 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: playavermont who wrote (58)	9/13/2005 4:29:14 PM
From: playavermont	Read Replies (1) of 159

Said this on September 24, 2004: <<In one year the market MAY be looking at a possible $135+ Million revenue company in 2006. At that time Marchex will most likely have a greater following, a longer track record, etc. An expansion of the ratios would most likely be in order (depending on the overall market conditions at the time). Thus, in September/October of 2005 - projecting out to 2006 a $135 Million revenue company with $25 Million in operating profits (18% operating margins): Price to sales of 6 Price to book of 8 P/E of 40 Assuming 35 to 38 Million shares outstanding these ratios would mean a stock price of $22 to $28 per share in one year.>> - - - - - - - - - - - - - - - - - - - - - - - - - - - Well, it is now September 2005. Analysts project 2006 revenues will be $127 Million. Slightly below the $135 Million stated above. The shares outstanding are right in the middle of that estimate of one year ago - 36.7 Million. The BIG, BIG difference is the OPERATING MARGIN expectations. They are 30%+ for 2006. Last year I guessed 18% operating margins for 2006. Applying the current information to the ratios we get: Price to Sales 6 ($762 Million Market Cap) Price to Book 8 ($2.4 Billion Market Cap) P/E of 40 ($1.5 Billion Market Cap) Average Market Cap = $1.5 Billion. $1.5 Billion Market Cap / 37 Million Shares = $40 per share. Could Marchex be worth $40 per share over the next 12 months???

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next