I did an analysis of QFAB today.
Here it is:
I did a valuation analysis of QFAB compared to the
other very closely compared 8 companies in QFAB's industry.
One thing you have to keep in mind is that QFAB's
earnings are going down, but due to a one time
occurence(technology mishap) and also the crisis overseas making it
cheaper for customers to import product rather than get it from
QFAB. However, QFAB's industry will have the same problem it seems.
This is just an overview of QFAB's valuation and
possible short term price targets for QFAB over the
next couple of weeks!
I took the average p/e, price to book and price to sales
ratios of QFAB other eight industry companies(IFSIA,
PTX, SHX, MHK, BIB, CRW, SMI and CNSO)
I threw out the high and low in each category.
Industry Averages:
P/E = 14.24
P/B = 1.77
P/S = .49
Currently QFAB ratios are as follows(In calculating
the P/E, I used the last three quarters and the next
quarter projection of .03/share, which gives us
.58/share in earnings).
P/E = 8.62 industry = 14.24
price target for full valuation for QFAB = $8.25/share
P/B = .72 industry = 1.77
price target for full valuation for QFAB = $12.25/share
P/S = .22 industry = .49
price target for full valuation for QFAB =
$11.125/share
*full valuation as compared to current industry
averages
You can see the price target over the next few weeks
that I have for QFAB is between $8.25 and $12.25 a
share.
I would think since 1999 is going to be flat. You can
assume earnings will be around .75 cents a share for
QFAB. That would give us a lower forward looking
p/e of around 6.50.
The current levels of this stock's price are VERY low
at this point. Although $8.25 is 65% above current
levels, I think that is very realistic over the next two
weeks. It can be reached if we see a stock buyback
program from management, but don't cross your
fingers.
Enjoy,
NASDBULL |
