Despite all the questions, Elan's current share price indicates investors are counting on significant profit.
She calculates that the current share price embeds a 10-year average growth rate of negative 6.9%.
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What is clear is that the current share price, slightly below book value, is a bargain.
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Autonomy seems to be doing well but who can resist a hefty premium to the current share price?
Allegheny Corp (Y) also agreed to buy Transatlantic Holdings (TRH) at a 10% premium to its current share price.
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To justify its current share price, Zale would have to grow after-tax profit ( NOPAT) by 4% compounded annually for the next nine years.
However, GM's current share price means that the US government will almost certainly not get back all of the money it spent on the bailout.
Shares later slipped to 300 pence, amidst market talk that the current share price may place the retailer out of the price range of the potential bidders.
The firm added that despite the lowered estimates, it continues to believe "there is value in PeopleSoft at the current share price, " especially from a free cash flow perspective.
The company is also reported to be holding out for an offer of about 50 euros per share, 35% higher than Commerzbank's current share price of about 37 euros.
"There will also be a lot of interest in the outlook for Apple, with the current share price reflecting the pessimism surrounding the company, compared to last year, " said Alpari's Erlam.
Apple at its current share price has a dividend of 2.3 percent If I am correct, which happens on occasion, and the dividend is increased 20 percent then Apple now has a yield of 2.76 percent or about the same as Coke.
He secured a 42% premium to FleetBoston's current share price (the mark-up is usually 20-30%), and this for a bank that has had to recover from a string of strategic mistakes: FleetBoston is now focusing on consumer finance after losing a packet in more exotic businesses, such as Latin American debt and dotcom venture capital.
Considering that the only time the stock sold for prices that high was during the first few days of 2008, before investors learned of the dismal Q4 results but after management knew of the debacle it took some effort to pay the highest prices of the quarter, and some 60% more than the current share price.
Cendant's board is already talking about awarding itself a new slug of share options at the current low share price in order to retain key managers.
At the current Yahoo share price levels, she says, it pays to repurchase the stock.
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While the yield looks very attractive at the current levels as the share price has declined more than 6% this year, but without earnings growth, we remain concerned about future distributions.
Which leaves us with two possible exlanations for the current further fall in the share price.
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It did not test many other widely used indicators, such as the relationship between the current price of a share and its 200-day moving average.
Loeb chose to trim the position after a strong rally in the stock, implying he may believe its current three-year high share price is near its intrinsic value.
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For example, over the last ten years the market has been willing to pay between 17.1x and 22.5x cash earnings per share, but the current price-to-cash earnings is only 16.8x.
For example, over the last ten years the market has been willing to pay 13.4x to 17.4x multiple of cash earnings per share, but the current price-to-cash earnings is only 11.9x.
The quite popular Black-Scholes calculator figures the value of warrants using current price, strike price, time until expiry, interest rate risk and share volatility as variables.
Furthermore, a current price-to-sales per share multiple of only 0.31x is well below the historically normal range of 0.36x and 0.71x.
Because under the terms of its government bailout, RBS has the right to sell new shares to the government at 50p per share, or roughly twice the current price (in technical terms, 50p is the conversion price of RBS's 'B' shares).
Since uranium is 20 times cheaper to find than oil, (in terms of finding cost's share of sale price), the current price run-up has already spawned hundreds of exploration companies, where there were only a handful a decade ago.
Or go for the market share at the price of some amount of current profits?
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Historically speaking, the market has been willing to pay 3.3x to 7.5x times sales per share, but at current levels it trades at a price-to-sales level of 9.6x.
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There could be an upside of 15% to our price estimate if the iPhone market share exceeds our current end-of-period estimate by about 4 percentage points.
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