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$13.60 0.26 (1.95%)
7/8/2008 4:00 PM

CryptoLogic Limited (USA) (CRYP)

CAPS Rating:
****

The Company through its subsidiaries, engages in the development and supply of online gaming software worldwide.

View All Commentary (CRYP)

Recs

2

Avatar ValuePicksOnly (43.02) Submitted: 2/05/08 4:53 PM : Outperform Start Price: $16.07 CRYP Score: -9.89

Strong balance sheet:





Debt/Equity: 0,00





Net margin - 5 Yr. Avg. 19,94





Return On Assets - 5 Yr. Avg. 12.20





Return On Investment - 5 Yr. Avg. 19.66





Return On Equity - 5 Yr. Avg. 19.91





(source: reuters)





Free cashflow:


32 million





Shareholders Equity:


112 million


(Morningstar)





Shares outstanding:


12,81 million


(fool.com)





Earning growth expectation next 5 years:


20% per year


(Yahoo finance)





If we would assume only 10% FCF growth for the coming 10 years and then 5% the next 10 years and we discount the FCF against a 15% discount rate, we'll get a company value of 493 million.





493/12,81= 38,51 = per share value





Desired Discount   25%   


Purchase Price    $28,88    


Current Price    $16,16    


Actual Discount   58%   








You decide...





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