An interesting performer from the last month showed up on our radar to analyze today. It was Stamps.com. It stood out from the rest in that the company financials look really good.
We use Phil Town’s simplified methodology to calculate intrinsic value. After looking at the important numbers like ROIC, BBVPS, EPS, Sales, Cash Flow, and Debt, we saw some impressive numbers that showed good growth rates and returns on a pretty consistent basis.
Our intrinsic value calculation came up to $146/share using a 15% growth rate on the current $5.52 EPS using a 28 PE. It was trading right at its intrinsic value closing at $144/share. Given its current momentum, strong fundamentals, and that it is relatively less overpriced than other stocks that showed up in the screener, we will add this one to the bunch for the month.