SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Elroy who wrote (60006)10/26/2017 5:05:47 PM
From: Graham Osborn1 Recommendation

Recommended By
E_K_S

  Read Replies (1) | Respond to of 78741
 
It's not a horrendous value compared with a lot of things right now, but not worth 16X earnings. Over the past 10 years their revenue and retained earnings has only grown about 12% a year. My rule of thumb is to pay no more than the long-term growth-rate for the earnings multiple, assuming the earnings are not doctored. The rule does not work well for extremely high or low growth rates.