rated > $2 a share by fusion investments!, page-4

Further update from Fusion:

Valuation:

In summary the valuations point to MTU being undervalued by up to 50%.

Discounted Dividend Model
¡öForward yield of 7.6% (Est EPS* Payout ratio/Price. =$0.138 * 70%/$1.27)

¡öBasic 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
¡öDiscounted Earnings based: $2.9 This is similar to a discounted cash flow analysis, but based on blended earnings estimates and book value.

¡öEPS * P/E Weighted Target: $2.4. I apply a probability (WAG) to each of the below possibilities and sum the products.

Part Three: It¡¯s Earning¡¯s That Count Analysis ¨C Defensive and Enterprising Profits, Finanical Statement Notes and the five minute checklist.

Part One: Orginal Analysis of M2 Telecommunications

http://www.fusioninvesting.com/2009/09/australian-growth-telcos-compared-m2-iinet-and-pipe/