Friday, August 3, 2007

Given Imaging Ltd.

Given Imaging Ltd. is a NASDAQ listed security that has been trading in a range between $16.83 and $32.80 over the past year. With 28,694,670 shares outstanding, a recent price of $28.20 gives a total market capitalization of $843,049,381. While there are certainly larger companies, Given Imaging Ltd. has definitely earned its place in the pack. Last year, Given Imaging Ltd. created $0.05 in earnings for every share outstanding.

Given Imaging Ltd. is currently priced by the market at 533.80 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, Given Imaging Ltd. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.