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Biotech / Medical : Misonix Inc. (MSON) -- Ignore unavailable to you. Want to Upgrade?


To: David S. who wrote (617)1/21/1998 1:17:00 AM
From: cape radical  Read Replies (1) | Respond to of 947
 
since when do investors base their valuations exclusively on the balance sheet? i seem to recall that a firm's value is the present value of all of its future free cash flow streams. MSON has cash to invest in growing this business. the key questions to ask are: at what rate will it grow and for how long?

Firm market value = Present value of future free cash flow

and for those of you interested in shareholder value, MSON's ROIC has exceeded its cost of capital.



To: David S. who wrote (617)1/21/1998 9:57:00 AM
From: Wesley0428  Read Replies (1) | Respond to of 947
 
Last FY, MSON generated about $1/share in operating cash flow. At the current price, you could buy the company for about $4.50 a share net of cash on hand. If they only continue to generate $1/share, that's a 22% ROI. Or better yet think of it as a Cash PE of 4.5X.

Looks like a decent value to me.