We rank Group 1 #9.  We estimate Group 1 will be worth ~$91 in six years from now (sometime in 2012) as the stock trades at 11.5x our 2012 EPS estimate of $7.96.  If the stock reaches these levels (earnings and multiple,) it represents 62% upside from Friday’s closing stock price ($56.57 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 $58.  This means that based on what we think the company will earn in 2012, we think the stock is worth $58 today, a 2% premium from current levels.

We are enthused about the growth prospects of Group 1, and see a lot of the similar turnaround dynamic ...

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Related Companies: Group 1 Automotive