Up 52.7% and still undervalued

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Up 52.7% and still undervalued

Since I recommended Linedata to my newsletter subscribers in August 2010 its share price is up 52.7% (58.1% including dividends).

Remarkable is that the company is still very undervalued.

At the current share price of €14.4 the company is valued as follows:

  • 9.9 times 2011 earnings
  • 8.5 times 2011 free cash flow
  • 6 times enterprise value to 2011 EBIT

The share price jumped just more than 20% recently when the company announced a tender offer to buy back 25.7% of its share capital at a price of €16 per share.

Interesting is that the founder and CEO Anvaraly Jiva is not planning on tendering any his shares and will own just over 38% of the company once the tendered shares have been cancelled.

You can find out more about the company here:
Linedata investor relations
Linedata December 2011 year end results

As always, please do your own research and remember past performance is no guarantee of future results. Like you I also don’t know what could happen in future.