63
TABLE 4.6
Financial Information of Peer Firms
Reported Actual Net Debt-to
Levered Cost Cost of
Income
Implied
g:
Company Unlevered Equity-
Size
of Equity Equity:
Profit
P/S Gordon Adjusted Estimated
Name
Beta
Ratio
Premium
Capital
90/10
Margin
Ratio
Model
Implied
g
P/S
Cuno Inc.
0.4199
0.02
0.43%
8.40%
8.57%
9.30% 2.753
4.86%
3.00%
2.50
Esco
Technologies,Inc.
0.4157
0.02
0.43%
8.37%
8.54%
6.74% 1.613
4.02%
2.00%
1.60
Flow
InternationalCorp.
0.4365
2.26
3.16%
15.60%
11.43%
−48.58% 0.272
−246.78%
NM
†
NM
Nordson Corp.
0.3974
0.19
0.34%
8.45%
8.13%
5.27% 1.949
5.59%
4.60%
2.11
Pall Corp.
0.3846
0.18
0.34%
8.33%
8.20%
6.40% 1.857
4.72%
3.00%
1.85
Peerless
Manufacturing Co.
0.4512
0.00
4.21%
12.38%
12.60%
−0.55% 0.458
13.74%
NM
NM
Taylor Devices,
Inc.
0.4617
0.85
4.21%
14.21%
12.68%
2.53% 0.485
8.55%
8.00%
0.66
TB Woods Corp.
0.4512
0.65
4.21%
13.68%
12.60%
−0.37% 0.407
14.73%
NM
NM
Average*
11.18%
10.35%
6.05% 1.22
5.55%
4.12%
1.75
Tentex
15.00%
15.00%
10.79%
3.00%
3.00%
1.36
‡
*Average based on positive values only.
†Not meaningful.
‡Discounted cash flow multiple.