Party valuation metrics

[DVO]

Back of the envelope stuff, but close, all in $US:

Market cap: $5.15 Billion
Net income: $171mm ( 6 mo's)

So if they make $350mm this year, which is likely a minimum, you're looking at 15 x earnings.

Negatives: slowing growth, player attrition rising, revenue per poker player dropping, oh, and this is a shady, unregulated, semi illegal operation...

Positives: If we're in a shakeout, the market leader likely wins.....BJ / side games will boost profit ( maybe a lot).....



Thought i'd post this because it's a bitch to unbury this from the published reports, buried as it is in the BS about EBITA ( read: bull^&amp / IPO expenses etc etc.

At 15 times earnings, it's a good price if you think the poker boom will continue (even at moderating growth) and PP will still be the 800lb gorrilla in 3-5 years.

But if all the negatives of the past month are borne out, lose lose half your money from here.