Rackspace Hosting (RAX)

Add a New Bulls Reason Company: Rackspace Hosting (RAX) Current price: Headline: (100 character max) Analysis: Cancel 100% agree 2 votes   Severly Undervalued Created when NYSE:RAX was $0.00 | Edit | History Assuming the mean analyst top line growth estimates and even higher CapEx estimates this company still trades at a tremendous discount at its current price. Assuming an 2013 exit EBITDA multiple of 3.5 and sensitizing relative to WACCs between 9 and 13%, this company shoudl still be trading between $11.50-$11.75. Similarly, using a very very conservative perpetuity growth rate of 2.5% and a WACC of 10.5% the target share price 8.62, implying over a 30% premium to what the stock is currently at. Besides the technical analysis the company is the leader in its market and looking at its closest comp, it trades at a significant P/E and revenue multiple discount. I've never seen a company with such growth potential that has been so mistreated by the market. I think this is a very strong BUY for any investor. (100 character max) Cancel

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