Mon, Jul 14, 2014, 11:41 AM EDT - U.S. Markets close in 4 hrs 19 mins

Recent

% | $
Quotes you view appear here for quick access.

Staples, Inc. Message Board

  • joshnsams28 joshnsams28 Aug 14, 2010 3:39 PM Flag

    Vender Zagg

    Zagg will be selling their products at Staples.

    Assuming management is right and profit margin does improve from Q2 and the 30% rev growth guidance holds true then ZAGG’s should be at least $4.00. Here is why:

    Discount the stream of income starting with .13 and increase that by just 25% for the next year and then 12% growth every year after that. The 12% comes from looking at other comparable retailers and their 5 year estimated growth rate. 12% is on the low end, especially because Zagg is only in a sliver of the market and has a potential much greater than other retailers with estimated growth rates of 12% or higher. The NPV of that stream of income is $4.01 if you use a discount rate of 9.8% (which is derived from the risk-free rate plus the beta of .76 times the difference between an assumed 12% market premium and the risk free rate – the 10 year treasury).

 
SPLS
11.08+0.18(+1.65%)11:41 AMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.