Don,
I just checked Market Guide,here is RATIO COMPARISON
by 2/12/1999
CUBE $21 13/16
......................CUBE ......... INDUSTRY ...........SECTOR
P/E...................19.44...........30.93.............47.73
PRICE/SALES...........2.48............3.18..............10.28
PRICE/BOOK............3.71............6.18...............12.52
PRICE TO TANGIBLE BOOK4.13............7.45...............13.68
ON above ration, the biggest difference is between PRICE/SALES for CUBE 2.48 and for SECTOR 10.28
SHOULD be PRICE/SALES for CUBE adjusted to same as that for the SECTOR
CUBE = $21 13/16 x(10.28/2.48)
= $90.40;
ON above ration,the smallest difference is between PRICE/SALES for CUBE 2.48 and for INDUSTRY 3.18.
should be PRICE/SALES for CUBE adjusted to same as that for the SECTOR
CUBE=$21 13/16 x(3.18/2.48)=$27.97
SO CUBE at a price between $27.97 to $90.40 is fair.
From P/E,
should be P/E for CUBE adjusted to the smallest P/E among SECTOR and INDUSTRY
CUBE=$21 13/16 x(30.93/19.44)=$34.70
so CUBE at price around $34.70 between $27.97 to $90.40 is a good answer.
Check CUBE last five years QUOTO,
CUBE falling several times mainly due to the PANIC in Chinese VCD market, now with DIVICOM generate more than half revenue, the VCD
portion becomes less important, which explains why CUBE only stayed
below $20 for 1 day this time. With DVD heating up, CUBE valuation
will surpass the industry and sector average soon, so
in long term, seeing CUBE above $100(without split) is not a dream.
Best Regards,
Wisdom
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