NYSE Euronext (NYX) Valuation
Company Profile (obtained from Google Finance): NYSE Euronext is a diverse exchange group. The Company offers a range of products and services in cash equities, futures, options, swaps, exchange-traded products, bonds, market data, and commercial technology solutions, all designed to meet the evolving needs of issuers, investors, financial institutions and market participants. The Company is also a liquid equities exchange group. The Company operates in a range of markets, which include New York Stock Exchange (NYSE), Euronext, NYSE Liffe, NYSE Arca, NYSE Alternext, NYSE Amex and NYSE Liffe US. In addition to its markets, through NYSE Technologies (NYXT), the Company operates a globally distributed connectivity network that supports trading on its markets, and also provides trading and information technology solutions to third-party financial markets and other financial institutions.
ModernGraham Comments: None at this time.
Defensive and Enterprising Investor Tests:
Defensive Investor – must pass at least 6 of the following 7 tests: Score = 2/7
- Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
- Sufficiently Strong Financial Condition – current ratio greater than 2 – FAIL
- Earnings Stability – positive earnings per share for at least 10 straight years – FAIL
- Dividend Record – has paid a dividend for at least 10 straight years – FAIL
- Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – FAIL
- Moderate PEmg ratio – PEmg is less than 20 – FAIL
- Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – PASS
Enterprising Investor – must pass at least 4 of the following 5 tests: Score = 1/5
- Sufficiently Strong Financial Condition, Part 1 – current ratio greater than 1.5 – FAIL
- Sufficiently Strong Financial Condition, Part 2 – Debt to Net Current Assets ratio less than 1.1 – FAIL
- Earnings Stability – positive earnings per share for at least 5 years – FAIL
- Dividend Record – currently pays a dividend – PASS
- Earnings growth – EPSmg greater than 5 years ago – FAIL
Valuation Summary:
- Last Updated 9/2/2009
- MG Value $0
- MG Opinion Overvalued
- Value Based on 3% Growth $2
- Value Based on 0% Growth $1
- Market Implied Growth Rate 84.60%
- Net Current Asset Value (NCAV) -$22.86
- PEmg 177.71
- Current Ratio 0.71
- PB Ratio 1.05
Key Data:
Balance Sheet – 6/30/2009
- Current Assets $1,620,000,000
- Current Liabilities $2,266,000,000
- Total Debt $2,137,000,000
- Total Assets $14,288,000,000
- Intangible Assets $6,153,000,000
- Goodwill $4,178,000,000
- Total Liabilities $7,563,000,000
- Outstanding Shares 260,000,000
Earnings Per Share – Diluted
- 2009 (estimate) $0.48
- 2008 -$2.81
- 2007 $2.68
- 2006 $1.37
- 2005 $0.35
- 2004 $0.26
- 2003 $0.52
- 2002 $0.32
Earnings Per Share – Modern Graham
- 2009 (estimate) $0.15
- 2008 $0.12
- 2007 $1.40
- 2006 $0.69
- 2005 $0.33
- 2004 $0.29
Valuation History:
- 9/2/09 – Value $0, Actual Price $27.07, Overvalued & Speculative


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