|Company name||QAD Inc.|
|Live stock price||[stckqut]QADB[/stckqut]|
|P/E compared to competitors||Fair|
|Confident Investor Rating||Poor|
|Target stock price (TWCA growth scenario)||$15.35|
|Target stock price (averages with growth)||$12.96|
|Target stock price (averages with no growth)||$9.13|
|Target stock price (manual assumptions)||$14.85|
The following company description is from Google Finance: http://www.google.com/finance?q=qadb
QAD Inc. (QAD) is a worldwide provider of enterprise software applications, and related services and support. QAD provides enterprise software applications to global manufacturing companies primarily in the automotive, consumer products, food and beverage, high technology, industrial products and life sciences industries. QAD software is used by over 2,500 global manufacturing companies. QAD’s enterprise resource planning (ERP) suite is called QAD Enterprise Applications, which is also known as MFG/PRO. QAD Enterprise Applications supports its global manufacturing customers business needs. QAD sells licenses to its software under a perpetual licensing model. Customers who purchase perpetual licenses deploy the application using an on premise model on their own servers. In June 2012, the Company acquired Strasbourg, France based DynaSys S.A. In December 2012, the Company acquired CEBOS, Ltd.
Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in QAD Inc.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $13.8
Current EPS (TTM): $0.23
Future EPS Calc: $0.4
Future Stock Price Calc: $23.91
Target stock price: $14.84
I hope that this makes you a better investor. [/s2If]