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Non-Tech : Foodmaker (Jack-in-the-Box Restaurants) -- Ignore unavailable to you. Want to Upgrade?


To: The Perfect Hedge who wrote (233)11/2/1997 9:20:00 PM
From: Chris Nevil  Read Replies (1) | Respond to of 338
 
Glen, using PEG both stocks would be slightly undervalued. It is true that CKR shows far greater year-over-year growth in the out year (1/99 vs. 1/98) compared with FM (9/98 vs. 9/97), not an entirely fair comparison due to the staggered fiscal years in any case. But as another yardstick, if you simply take the raw earnings estimate for FM against CKR in either of the comparable years, and apply the percentage difference to their current stock prices, it's impossible (at least for me) not to see FM as deserving a considerably higher price relative to CKR's current evaluation. I certainly understand a difference in valuation. But not one as drastic as we see at present.

Regards,

Chris