Tyco International Limited (TYC) Message Board

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Non-Tech : Tyco International Limited (TYC)

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To: deeno who wrote (3702)	1/13/2006 12:06:14 PM
From: rich evans	Read Replies (1) of 3770

Tyco said they will continue buying back shares and will start again shortly. Earnings and PE for 2006 should not determine stock price but valuation of companies. Tyco is splitting up like I assumed on previous post. So here is the revised valuation with lower PEs: 25% of business=Health--10billrevs x26%OM=$2600 EBIT 2600- $150( 1/4 total interest) =EBT. Net at 25% tax = $1.8bill / 500millshares(1/4 total of 2bill)= $3.66/share. PE of 20 = $73/share. 1/4 of that is $18 dollars. 30%=Electronics= 12000revsx 15%OM=1800 -180interest x .75(tax)= 1215. 666mill shares =$1.82 x 18PE= 33 x .3= $10 45%=Fire/Security/Enginneering= 18billx 11.5%OM=$2070 -$270interest=$1800x .75(tax)=$1350 /900millshares= $1.50 share x17 PE= $25.50 x 45%= $11 Total $11+10+$18 === $39share breakup value This should be where the stock price is next January, thereabouts. So yes Tyco is a darn good buy right now . I am going to buy all day. Rich

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