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Published byByron Peters Modified over 8 years ago
Baldor Electric – NYSE (BEZ) Presentation by: Cole Stocking, Neal Smith, & Darron Campbell
Basic Business of BEZ Major Products: Electrical Components to include the following: Electric motors (both AC & DC) AC & DC Controls (Inverters, Microdrives, Integral Tachometers, & & Lifting Magnets) Gear Products (AC & DC Gear Motors, Speed Reducers) Market Share Baldor is the largest manufacturer of AC & DC Electric Motors Account for roughly 13% of the Electrical Component Industry
Industry Investigation General Growth of Industry Large increase in industry size following the Korean War Continued increase til early 2001 at which time industry leveled off with frequent increases and decreases Position in Industry Assumes 13% of the Electrical Component Industry Considered Average amongst Average Growth Rate Compared to Industry From 1998-2008 – Baldor stock grew 6.3% From 1998-2008 – Industry grew roughly 9.3% Average Price Ratio Compared to Industry Baldor average P/E Ratio is 17.12 Industry Average P/E ratio is 24.78
Fair Value of Baldor Stock Current Price $ 27.94 P/E Ratio$43.16 P/CF Ratio$33.68 P/S Ratio$32.55 Baldor stock is undervalued
Buy/Sell Recommendation Buy Baldor stock based on the Price Ratio Analysis on previous slide which indicates that Baldor stock is currently undervalued; therefore, we believe that it will grow closer towards its fair value by year end.
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