YLO is being re-pricedJust what is this stock worth now?
With a declining print business but an improving digital media business, is there a realization that the fundamentals suddenly got compelling in spite of the substantial price target cuts and downgrades.
BMO's earnings estimates:
| Current Estimates | Quarter Sep/11 | Quarter Dec/11 | Fiscal Year Dec/11 | Fiscal Year Dec/12 |
| Current Mean EPS | 0.14 | 0.15 | 0.65 | 0.68 |
TD Waterhouse earnings estimates:
Current Mean (as of 8/11/2011)
.76(2011)
.60(2012)
.62(2013)
| | |
Based on TD's lower 2012 forward earnings estimates of
.60; that is a 1.2 P/E multiple on thurs low of
.72 with a 21% dividend, and now at $1.16 trading at 1.93 multiple with a 13% dividend.
YLO is in a process of price discovery. Just what is a fair P/E multiple now, and will the P/E trend up or down from here?
My humble guess is this stock trades up to a 6% dividend level at a $2.50 stock price with a 4.17 P/E multiple.
After this, the next quarter results will trigger another re-pricing event.