Re: P/E and growth rate should be the same
The growth rate isn't so simple to measure because of the
acquisitions, share buy-backs, etc.
Date Shares Book Value Value/Share
9/30/95 15,763 50,418 $3.20
9/30/96 17,456 89,577 $5.13
So, the growth rate/share has increase 60%. This is higher than the
operating earnings growth rate partially because Phoenix had valued
their Xionics shares at 0 before they went public. Of that $40m
increase in book value, $13m was from Xionics, $10.4m from Intel, 1m
from Virtual Chips, $11m from earnings, and $4m in employee stock. On
the other side of the ledger, $2m was spent to buy back 152,000
shares. Since they bought Virtual Chips using a pooling of interests
transaction, they can't buy back more shares for 180 days after the
transaction closed.
See my post on the SystemSoft thread for book value comparisons to
other SW companies. Phoenix is the cheapest and SystemSoft is the
most expensive. |
