RE:$45 by year end?zalmonella wrote: I'm sure there's a good business in here somewhere struggling to get out, but when will that be? I admit to being puzzled about the stimulus that makes analysts insist we should keep buying. Business isn't growing in either department, and despite being debt free, there has to be a reasonable assumption that business will grow, which nobody can see a stimulus for. Being debt-free matters not a whit when the business is shrinking, not growing.
Discounting the gorilla CSU, when I look at others in the similar line, it's hard to get a fair value when compared to GIB.A, DSG, KXS, OPTsyz OTEX, SYZ and BB don't fit the model, but nonetheless are doing better anyway. With nothing in the offing except rolkling up more assets, there's nor eason to buy. $45 by year end doesn't sound the last bit unreasonable with the current P/E, and if we use more traditional measures of P/S and P/B the fair value coulid be a lot lower at $30.
On a comparative front to the overall market ENGH is expensive but nothing compared to the rest of software acquiror tech (excluding CGI which is services instead of software). KXS and DSG are trading at metrics close to triple that of ENGH. Dye and Durham is a recent acquiror and they are doing purchases approaching 20x Ev/EBITDA. Enghouse continues has had valuation discipline for acquisitions.