Tuesday, August 7, 2007

Double-Take Software Inc.

Double-Take Software Inc. is a NASDAQ listed security that has been trading in a range between $10.25 and $19.10 over the past year. With 21,027,350 shares outstanding, a recent price of $15.82 gives a total market capitalization of $337,488,951. While there are certainly larger companies, Double-Take Software Inc. has definitely earned its place in the pack. Last year, Double-Take Software Inc. created $0.18 in earnings for every share outstanding.

Double-Take Software Inc. is currently priced by the market at 87.40 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Double-Take Software Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.