HomeAway - Value Alert
Texas (October 7, 2013) Wax Ink has issued a Negative Investment Interest opinion for HomeAway, Inc. (Nasdaq: AWAY) based on a recent baseline equity review that placed fair value between $19-$25.
Negative investment interest means that the current risk reward ratio does not favor investment consideration at this time.
The recent close of $29.97 is approximately 162% above the fair value buy target for the stock and approximately 27% above the fair value close target for the stock. The recent close is also 14% below analysts’ twelve-month $35 median price target for the stock.
The recent close represents a 16% increase in the one-year price of the stock, while year-over-year sales increased 22%, year-over-year earnings increased 31%, and year-over-year debt increased 0%.
The stock currently has a Price to Free Cash Flow Ratio of 71, a trailing twelve-month PE Ratio of 60, and a PEG Ratio of 2.2 basis estimated forward earnings growth of 27.5%.
In the past 52 weeks, share prices have moved between a high of $34.30 and a low of $19.58, placing equilibrium at $29.84.
With the recent close, the stock is trading 14% below the 52 week high, 35% above the 52 week low, and 1% above equilibrium.
The three-month average daily trading volume for this stock is, approximately 1.15 million share.
HomeAway is an online marketplace for the vacation rental industry. Vacation rentals are fully furnished, privately owned residential properties, including homes, condominiums, villas and cabins etc..
The company's listed competitors include Expedia, priceline.com,and Wyndham Worldwide.
Financial information contained herein, is based on the company's most recent annual SEC filing for year ending December 31, 2013 and all prices are per share unless otherwise noted.
Wax Ink currently has no investment position in any company mentioned in this alert.
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