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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Mark Marcellus who wrote (16058)	1/3/2003 3:01:03 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78567

HD: I don't see a compelling case for it, despite the drop. Multiples aren't attractive... 1/3/02 EV/(EBITDA-CAPEX)=(235021.3-3834.260)/(5270-3,393)=24.6 EV/FCF (235021.3-3834.260)/(5,963.0-3,393)=18 [No adjustment made for lowered guidance] ...Given the issues: Service problems that will require more SG&A to improve * New locations in less populated areas - lower sales, less efficient - Growth is behind them due to saturation * Lowes encroaching on HD areas that had minimal competition previously * Nearing the end of the refi boom that fuels a lot of remodel purchasing