5/16/2012

Value Creation Ignored

CTCH: Commtouch  develops Web security  and antivirus technologies and solutions. Commtouch is headquartered in Netanya, Israel, with a subsidiary in Sunnyvale, Calif.

Current Price = 2.42

Market Cap: 58.47M: Enterprise Value: 38.47M : Enterprise Value/Revenue:1.64 :Enterprise Value/EBITDA:7.16
Revenue:23.40M : Revenue Per Share:0.98 : Qtrly Revenue Growth (yoy):6.90% :EBITDA (ttm):5.37M
Total Cash:22.04M : Total Cash Per Share:0.91 :Book Value Per Share:1.26  

CTCH continues to see significant improved valuation based on EBITDA, Sales, Book  Value to enterprise value. Management continues to see continued strong profitable results, announced share buy back, hired investment relations advisory firm all should help a justified return to a higher price.

2007-12 2008-12 2009-12 2010-12 2011-12 Current
Price 5.59 3.08 2.48 3.64 3.50 2.46
EV Per Share 5.07 2.49 1.80 3.10 2.65 1.61
BV Per Share 0.45 0.58 0.75 0.87 1.17 1.21
Sales Per Share 0.41 0.52 0.60 0.73 0.93 0.95
ROIC 21.26 16.21 29.88 21.67 18.18 17.87
GM% 87.50 87.00 85.10 83.90 82.20 82.20
FCF/Sales 31.20 17.85 30.75 20.64 26.83 26.77
EV/Sales 12.43 4.76 2.99 4.25 2.84 1.70
EV/BV 11.32 4.29 2.41 3.55 2.27 1.33
EV/EBITDA 63.35 27.70 13.82 18.26 13.24 7.69

1 comment:

Jonas said...

Hi,I am a new reader to your blog and first of I just want to thank you for a very well written one! :)

I have a question though, why do you use EBITDA instead of EBIT or EBT? I am sort of new to value investing so I'm sure you are having a good reason for it and got curious. Isn't there are risk with removing depreciation and amortization? Or do you look up these later and somehow take them into the calculation?