SI
SI
discoversearch

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.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: E_K_S who wrote (40540)12/20/2010 4:55:55 PM
From: Grantcw  Read Replies (1) of 78482
 
Hello EKS,

I had a few minutes here and wanted to do a comparative analysis of SVU from an EV perspective. I think what makes SVU look really cheap is that it has such a small equity portion compared to debt. So, I wanted to do an analysis (from Yahoo) of Enterprise Value ratios to Sales and EBITDA. Here's what I get:

EV/SALES EV/EBITDA
SVU 0.24 4.24
SWY 0.31 5.13
KR 0.25 5.47
WMT 0.57 7.24
COST 0.36 9.83
TGT 0.86 7.97

So, SVU is still the cheapest on both metrics, but I don't know if it's really trading on potential bankruptcy risk. That being said, if the EV/EBITDA bounces up to the 5 or 6 level, that's a solid return on the common equity. Especially if debt is being paid down on the way to that ratio value returning. I have a solid position in SVU, and I'm at least telling myself I'm not adding unless it goes down more.

Thanks,

Grant
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News