Ebix, Inc. (NASDAQ:EBIX)

CAPS Rating: 5 out of 5

The Company is an international provider of software and Internet-based solutions for the insurance industry.

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Player Avatar murphjas (< 20) Submitted: 7/8/2012 2:53:57 AM : Outperform Start Price: $19.66 EBIX Score: -20.00

Intrinsic Value is $169.00

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Member Avatar ravens9111 (56.45) Submitted: 7/8/2012 10:38:32 AM
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really? how did you come up with that?

Member Avatar murphjas (< 20) Submitted: 7/9/2012 2:28:33 AM
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The Benjamin Graham valuation formula. If my math is right and all other factors that a effect a stocks price play out right.

Member Avatar forexnutca (84.39) Submitted: 8/8/2012 1:10:13 AM
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I think a more conservative DCF calculation would be more "wise" in this case....

With another 10 years of growth... @ a growth rate of 15%

1.67 EPS growing at 15% a year for the next 10 years after that with a terminal value of inflation (4%....could be
more). I think a fair value of $40-$60 would be more accurate. This isn't taking pre tax EPS or Capex into consideration.

This is using 10% discount rate which is also conservative. Your valuation could easily be feasible using the current risk free rate (10 year bond rate) as the discount rate, but I don't think yields will stay this low for the next 10 years.

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