Saturday, August 4, 2007

First Business Financial Services Inc.

First Business Financial Services Inc. is a NASDAQ listed security that has been trading in a range between $18.70 and $23.50 over the past year. With 2,500,820 shares outstanding, a recent price of $19.07 gives a total market capitalization of $47,740,654. While there are certainly larger companies, First Business Financial Services Inc. has definitely earned its place in the pack. Last year, First Business Financial Services Inc. created $1.40 in earnings for every share outstanding.

First Business Financial Services Inc. is currently priced by the market at 13.60 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, First Business Financial Services Inc. 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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