fusion investing - pedal to the metal - buy, page-2

Previous Fusion valuation for MTU (1/2 year). Note EPS have grown substantially since this valuation and in particular that EPS for first 1/2 years 2010 was alread

Discounted Dividend Model
Forward yield of 7.6% (Est EPS* Payout ratio/Price. =$0.138 * 70%/....$1.27)
Basic DDM Price Target: $2.4 I also ran two and three stage dividend models. Both derived slightly higher targets, but are more prone to garbage in.
Earnings Based Valuation Targets
Discounted Earnings based: $2.9 This is similar to a discounted cash flow analysis, but based on blended earnings estimates and book value.
EPS * P/E Weighted Target: $2.4. I apply a probability (WAG) to each of the below possibilities and sum the products.

Refer also EPS / valuation table on EPS / PE ratio and you get the picture of the underlying valuation gap given 2011 EPS > 18cents!

http://www.fusioninvesting.com/2009/09/m2-telecommunications-analysis-and-valuation/