Fair value for a shrinking company with increased profits. Hmm, go look at MO with a PE of 17 or LO with a PE of 4.6.
APOL has a PE of 5.5 not a significant difference. I don't think we are going to see multiple expansion here. So the only growth in stock will come from profits. Look for a slow and steady climb upward. Might be 25 end of year. That is a 20% move. Not too shabby by my standards.
Yes I think this company is a buy at 20. I picked some shares up on Monday.
To the people who post that this stock should have a PE of 2, I think you are out of your mind.
The new CEO will be the dad. I don't think title change will change the company in any way. It is a billion dollar company and if he earns 7 million a year, why the big uprorar over a 5 million retirement bonus. I know when most companies senior officers retire they get 60-100% bonus.