Waters Corp (NYSE:WAT)

CAPS Rating: 3 out of 5

Analytical instrument manufacturer that designs, manufactures, sells & services high performance liquid chromatography, ultra performance liquid chromatography together with high performance liquid chromatography and mass spectrometry instrument systems.

Recs

2
Player Avatar XMFYoda (98.07) Submitted: 5/10/2008 5:00:15 PM : Underperform Start Price: $63.49 WAT Score: +8.32

I figure Waters is a mature company. They’ve manage to reach market leader status in two markets and then lose it in one of the two. They carry debt like a mature company. Only thing is they aren’t returning cash to shareholders like a mature company. It seems they need their war chest to fight for market share.
I did something of a discounted cash flow analysis on Waters, assigning a quarter of their cash from operations after taxes and debt service, or $64 million a year, to benefit shareholders. I let that grow indefinitely at the extremely strong rate of 8%. For details, check my blog: http://caps.fool.com/Blogs/ViewPost.aspx?bpid=52408&t=01005387446805807618
The per share value I came up with is $21.

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