Tuesday, August 7, 2007

Multi-Color Corp.

Multi-Color Corp. is a NASDAQ listed security that has been trading in a range between $26.37 and $43.40 over the past year. With 6,717,160 shares outstanding, a recent price of $36.95 gives a total market capitalization of $246,922,790. While there are certainly larger companies, Multi-Color Corp. has definitely earned its place in the pack. Last year, Multi-Color Corp. created $1.66 in earnings for every share outstanding.

Multi-Color Corp. is currently priced by the market at 22.20 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, Multi-Color Corp. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.