Monday, August 6, 2007

FalconStor Software Inc.

FalconStor Software Inc. is a NASDAQ listed security that has been trading in a range between $6.35 and $12.28 over the past year. With 49,233,870 shares outstanding, a recent price of $10.43 gives a total market capitalization of $519,417,338. While there are certainly larger companies, FalconStor Software Inc. has definitely earned its place in the pack. Last year, FalconStor Software Inc. created $0.04 in earnings for every share outstanding.

FalconStor Software Inc. is currently priced by the market at 234.50 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, FalconStor Software Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.


Anonymous said...

With earnings at the current level I wonder if any Analysts have projected out growth to see when they expect earnings to be $1.00per share?