# Price Case Study: How Much Would You Pay For Company X?

What Price for the whole business would YOU pay? Then tell me the per share price.  The company had operations for 25 years prior to going public. The company’s stock price will under perform the market (SPY) about 1/3 of the time over the next forty years.

 BUSINESS XXX? 1974 1973 1972 1971 1970 Cash \$2,238,263 \$2,168,224 Working capital 27,132,580 16,796,897 LT Debt ** 10,578,269 5,065,567 Shareholders’ Equity 30,734,128 \$24,753,623 Outstanding Shares 6,542,250 6,512,950 Net Sales \$167,560,892 \$124,889,141 78,014,164 44,286,012 30,862,659 Income Bef. Taxes 11,883,754 8,917,188 5,569,027 3,170,599 2,198,764 Pro-forma Net Income \$6,158,520 4,591,469 2,907,354 1,651,599 1,187,764 EPS \$0.93 \$0.70 \$0.47 \$0.30 \$0.23 Units in operation 78 64 51 38 32 ROE 38.67% 36.02% ** Co. has a \$12 mil. Credit line renewed yearly of which it has borrowed \$4 mil. Assume Co. needs all cash for operations Assume strong growth for 40 years.You need a required rate of return of 15%

# What can past market crashes teach us about the current one?

The markets have largely recovered since the March selloff, but most would agree we're not out of the woods yet. The COVID-19 pandemic isn't close to being over, so it seems that volatility is here to stay, at least until the pandemic becomes less severe. Q2 2020 hedge fund letters, conferences and more At the Read More

Can you guess the actual name of the company?

To give you some historical perspective of 1974 see:A Study of Market History through Graham Babson Buffett and Others

Winner gets a date with my Ex: http://youtu.be/E55ni_xc4ww (PLEASE do NOT click on the link unless you win the prize)

Via: csinvesting

In my peripatetic life I have been a ruby smuggler, commodity trader, securities analyst, investment banker, and entrepreneur. Each role taught me more about value investing. - John Chew - The Editor