re: Ann: Forge Target's Statement and Ind... Yeah, I was surprised to see the capitalization method used. It's quite primitive in the sense that one major value factor it neglects is future growth.
The best way to account for such variables is to get the market multiple from comparable companies and then tinker with it. This is of course highly subjective. The analyst decided to roll with the average multiple. The average being from a pretty rough bunch of companies. A higher multiple in my opinion was definitely warranted due to Forge's growth potential which is underlined by the alliance and the company's strong forward order book.
Interesting to note. RSM Bird Cameron gets paid $75,000 for the report. Holy shit!
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