April 9, 2008

Looking at SoundBite Communications

Seeking Alpha has an article on SoundBite Communications and its cheap valuation. From the article:

"Using a modified DCF analysis, here’s what I get under 3 different scenarios:
  • Best Case Scenario: SoundBite’s shares are valued at anywhere from $15.81 - $18.33 per share ($17.07 median).
  • Middle Scenario: SoundBite’s shares are valued at anywhere from $9.63 - $10.84 per share ($10.23 median).
  • Worst-Case Scenario: SoundBite’s shares are valued at anywhere from $5.30 - $5.86 per share ($5.58 median).

Using the DCF metric, SoundBite’s share value is trading way below its intrinsic value of about $11.33 per share, and should be at least double where it stands today."

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