Sentences with phrase «average margin deserving»

In terms of valuation, averaging the two extremes seems fair, with the resulting near - 16 % average margin deserving a somewhat generous 1.67 Price / Sales multiple *.

Not exact matches

But presuming software is the ultimate driver of the business, EBITDA will become increasingly relevant: A decent compromise for now is to use an adjusted margin, averaging the latest 19.9 % EBITDA margin & Op FCF margin of 7.2 % (noting a prior year margin of just 2.6 %)-- a 13.6 % adjusted margin deserves a 1.33 Price / Sales ratio.

Let's split the difference, and base our valuation on an average / assumed operating margin of 19.8 % — which deserves at least a 1.75 Price / Sales multiple, in my opinion.

Anyway, FY - 2015 results confirm a 1.9 % adjusted EBITA margin — but if we allow for an average 19 % minority interest in profits, this is equivalent to an underlying 1.5 % margin, which deserves a 0.15 P / S multiple.

Again, I'll split the difference (vs. a 30 % margin) & base my valuation on an average / assumed operating margin of 21.6 % — which I think now deserves a 2.0 P / S multiple.

A fairer valuation would average the two — implying an 11.3 % margin, which deserves a 1.125 Price / Sales ratio (noting the company's superior cash generation).

Investors focus more on recent results, so an average of the recent & long - term Op FCF margins seems appropriate — the resulting 13.0 % margin deserves a 1.2 Price / Sales multiple.

All in all, I'd peg the average manager on a 25 % margin, which normally deserves a 2.5 - 3.0 Price / Sales multiple.

Let's be kind & presume an average margin of 7.2 % is possible, now the debt restructuring's given the company some breathing room — this deserves the same 0.6 P / S multiple as last year.

I think it's fair to presume the most recent figures are distorted, so let's presume an average operating margin of 5.2 % — this deserves a 0.45 P / S multiple.

[Again: * Per my rule of thumb, based on long - term observation of market / M & A multiples, a 10 - 12.5 % operating margin deserves a 1.0 P / S multiple (on average).

On average, we're looking at an underlying 20.4 % margin, which deserves a 2.0 P / S multiple.

Noting that & operating on the assumption margins will eventually converge, a 7.6 % average of current / long - term margins might deserve a 0.7 Price / Sales multiple at this point.

[NB: Noting market valuations (and M&A multiples) over the years, my rule of thumb is a 10 - 12.5 % operating margin deserves a 1.0 P / S, on average.