Tyco International Limited (TYC) Message Board

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Non-Tech : Tyco International Limited (TYC)

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From: rich evans	1/9/2006 11:01:01 AM
	Read Replies (3) of 3770

Goldman says Tyco breakup value is $38/share. In 2001-2 Tyco breakup value was said to be $45/share. Tyco is much better company now with less debt. Running approximate numbers, the $45/share seems about right. Here is how the number is arrived at: 25% of business=Health--10billrevs x26%OM=$2600 EBIT2600- $150( 1/4 total interest) =EBT. Net at 25% tax = $1.8bill / 500millshares(1/4 total of 2bill)= $3.66/share. PE of 30 = $91/share. 1/4 of that is $23 dollars. 30%=Electronics= 12000revsx 15%OM=1800 -180interestx .75(tax)= 1215. 666mill shares =$1.82 x 2oPE= 3.64 x .3= $11 45%=Fire/Security/Enginneering= 18billx 11.5%OM=$2070 -$270interest=$1800x .75(tax)=$1350 /900millshares= $1.50 share x18PE= $2.70/share x 45%= $12 Total $12+11+$23 === $46/share breakup value Buy Tyco. Rick

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