Saturday, August 4, 2007

FEI Company

FEI Company is a NASDAQ listed security that has been trading in a range between $18.78 and $39.25 over the past year. With 36,184,000 shares outstanding, a recent price of $28.69 gives a total market capitalization of $1,055,125,434. While there are certainly larger companies, FEI Company has definitely earned its place in the pack. Last year, FEI Company created $1.19 in earnings for every share outstanding.

FEI Company is currently priced by the market at 25.30 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 in excess of $1 a share, FEI Company could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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