Study break!
I went to their homepage.
Their earnings as of the first 9 months was .31 not taking into account the acquisition costs.
If MRVC makes .14 like the analysts say, they would make .45 for the year on an operating basis.
If this grows by 100% you are looking at .90 for '97. Then, if you give MRVC a
multiple of 50, the price = 45
multiple of 60, the price = 54
multiple of 70, the price = 63
multiple of 80, the price = 72
multiple of 90, the price = 81
I believe that all of these multiples are possible but 50 to 60 seems to be conservative with this one seeing as how it has rarely seen the multiple equivalent to its growth rate.
Lets dream folks!
If MRVC makes 1.80 the year after, look out
multiple of 30, the price = 54
multiple of 40, the price = 72
multiple of 50, the price = 90
multiple of 60, the price = 108
multiple of 70, the price = 126
multiple of 80, the price = 144
multiple of 90, the price = 162
DREAMING AWAY
DAN ROSS |
