Currently, from a technical analysis point of view, the share are oversold. RSI is at 27.52 as of Tuesday's close and the stock's price is resting just above a support line created last year. The money flow indicators are showing strong, positive movement as shares trade hands at this lower level.
Here is an excerpt from PeakStocks.com concerning fundamental analysis of the company (dated 5/5/08):
According to my research and calculations, GeoEye trades at about 1/2 where it should be, with an easy argument that it could be MUCH higher than that.
Here are some quick hits:
• Discounted Cash Flow (DCF): GeoEye should be at least DOUBLE from where it sits today using even anemic assumptions.
• Enterprise Value to EBITDA: (EV/EBITDA): Using this metric, GeoEye is at least 145% undervalued.
• Trailing Price to Earnings (P/E): Using this metric, GeoEye is at least 125% undervalued.
• Forward Price to Earnings (P/E): Using this metric, GeoEye is at least 60% undervalued.
• Price to Forward Earnings to Growth (PEG): Using this metric, GeoEye is at least 80% undervalued.
$19.03 (05/14/08)
