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Thread: Easyjet Buyback
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Old 9th Jul 2004, 13:19
  #34 (permalink)  
Ben Evans
 
Join Date: Sep 2002
Location: London
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Its unknown how much readers know about investing or the easyJet business plan.

At the moment the Discounted Cash Flow technique of valuing easyJet dictates a valuation of about 140p. The DCF tool is good when it come to mature companies with predictable income. But it falls down slightly when it comes to rapidly expanding companies in sectors experiencing unsustainable competition.

The growth will ease and much of the competition will go bust.

Thereby restoring share value to the levels seen at about the time of flotation. Namely 350p.

For investors with money to spare for 2 years 142p at presents excellent return potential. Spice it up with the prospect of Stelios taking it private for 202p then the share is tempting.
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