We rank Monro (Muffler Brake) #8.  We estimate Monro will be worth ~$53 in six years from now (sometime in 2012) as the stock trades at 18.7x our 2012 EPS estimate of $2.83.  If the stock reaches these levels (earnings and multiple,) it represents 72% upside from Friday’s closing stock price ($30.72 on 07/07/06.)  Using an 8% discount rate (over the course of the next six years,) based on our 2012 earnings forecast, we calculate a net present value of $33.  This means that based on what we think the company will earn in 2012, we think the stock is worth $33 today, an 8% premium from current levels. 

While we think independent repair shops in general will be under heavy competition ...

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Related Companies: Monro Muffler Brake