RE:RE:RE:RE:RE:RE:Conservative example on LTE.Ok, apply your multiples from Dycom (I haven't looked at what the GM% are, which are a big contributor to the earnings, nor have I looked at what their ebitda growth which is important to understanding multiples).. Dycom does 3.5B in revenue (slightly more of a scale than LTE)
Apply your P/S of 1.2, gives LTE market cap of $12M, P/E of 30, if you extrapolate $20M sales, and NM% of 10%, gives a market cap of 60 (which is about today's price). Where is the upside?!
I haven't looked at the fundamentals of Dycom, but there aren't a lot of companies that receive a P/E of 30 except high tech companies - not even appl gets a 20x PE and it is growing substantially every year, and has a healthy GM%.
You have to look at revenue, cash flow, and earnings growth - and if they are growing at 30% per year, then they might justify a 30 PE - and this is usually over a long term, not one year. What do you have with LTE to justify paying more?