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Technology Stocks : Lucent Technologies (LU)
LU 3.120+11.4%Oct 31 9:30 AM EST

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To: David Hansen who wrote (21813)11/17/2005 1:26:17 AM
From: Elroy  Read Replies (1) of 21876
 
Elroy, Could you revisit your EV comparison for Lucent? I am using a market cap of 12.05, total liability of 5.4 and cash of 4.93. I get an EV value of 12.52 and using 9.4 for trailing sales I get a ratio of EV to trailing sales of 1.3... I think the last time you and I looked at this back in May it was around 1.7.

I get 1.6x for EV to trailing sales.

My numbers are

Trailing sales = $9.44B
Cash = $4.9B
Debt = $5.4B
Market Cap = $14.3B (this is where we differ)
Ent Value = $14.76B

Fully diluted shares out = 5.261 million, which is where we differ. I think you're using basic shares and I'm using fully diluted.

biz.yahoo.com

I haven't been paying that close attention to LU because of the fact that their ongoing pension credit distorts operating profit so much, so I don't know why basic shares and fully dilluted differ so much (800 million different).
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