From the Pheonix Thread:
To: John B. Dillon (3198 )
From: Mark Brophy
Tuesday, Mar 23 1999 2:37AM ET
Reply # of 3206
Re: ISI, Phoenix, and Wind River
Company Price Revenue Mark Cap EPS P/E Book P/B
Phoenix 8 1/16 124,000 223,976 0.60 13 129,081 1.7
ISI 15 1/8 106,900 351,520 0.69 22 99,142 3.5
Wind River 20 3/16 129,400 869,011 0.77 26 149,414 5.8
The EPS and P/E numbers are forward-looking from Zacks. If you use the
Motley Fool PEG ratio as an indicator of value, then Wind River is a
better deal than ISI. I endorse this approach because I think Wind River
has a long term sustainable growth rate of 30%, and ISI and Phoenix can
sustain 20%.
I believe the interconnect semiconductor IP group has a sustainable growth
rate of 40-70% for the next 5-10 years, which would raise the overall
growth rate above 20% several years from now. There is potential for a
$300m IPO in 2-3 years, so I think Phoenix is by far the best value of the
3 companies. If they manage this business well, their long term sustainable
growth rate will be the highest of the 3 companies.
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