METAVANTE TECH (MV)
METAVANTE TECH (MV)
Company Name: METAVANTE TECH
Ticker Symbol: MV
Industry: BUSINESS SERVICES
Price (delayed by 20 minutes): $0.00
Number of Brokerage Firms Following Firm2
Analysts Recommending STRONG BUY0/2
Analysts Recommending BUY1/2
Analysts Recommending STRONG SELL0/2
Analysts Recommending SELL0/2
Analysts Recommending HOLD1/2


Company Overview and History


Company Overview

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Recent Events





Reasons to Buy METAVANTE TECH



Investors Give Reasons to Buy




If You Think METAVANTE TECH Is a Buy, Post Your Reasons Below
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Analysts Recommending Buy


BrokerageAnalystZacks All
Star Rating
DateRecommendationTarget Price

Reasons to Sell METAVANTE TECH



Investors Give Reasons to Sell




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Analysts Recommending Sell



Reasons to Hold METAVANTE TECH


Investors Give Reasons to Hold




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Analysts Recommending Hold


BrokerageAnalystZacks All
Star Rating
DateRecommendationTarget Price

How Can I Decide if METAVANTE TECH Is a Buy or a Sell?





How Can I Decide if METAVANTE TECH Is a Buy or a Sell?
How Can I Find Errors in the Consensus Forecasts For METAVANTE TECH?
What if I Agree with Consensus Forecasts?
Terms
Capital Structure, Solvency and Cash Flow
Governance, Social Responsibility and Employee Relations
Acquisitions, Divestitures and Joint Ventures
New Products or Opportunities
Questionable Practices
Recent and Upcoming Events
Major Risks


How Can I Decide if METAVANTE TECH Is a Buy or a Sell?
Follow the Experts...

There are 2 individual(s) in the US who know more about METAVANTE TECH and its stock price than almost anyone else

These 2 individual(s) are the 2 brokerage analysts who follow METAVANTE TECH and whose research is discussed above by Wiki posters who receive the research from these brokerage firms

To decide if you want to buy METAVANTE TECH, you could read the discussions above and see if you find a bull or bear argument for METAVANTE TECH that you think is compelling – or you might toss a coin.

To help you evaluate the credibility of the arguments made by an analyst, we have displayed the Zacks All Star Rating of the analyst after his/her name. Zacks rates analysts as 1, 2, 3, 4, or 5 STAR analysts based on the performance of their stock recommendations. The analysts with 5 STAR ratings have had the best performance.

For more information on these Zacks Analyst ratings, go to http://www.zacks.com


...or Make Your Own Non-Consensus Decision

However, we believe that there is a better way to make stock selection decisions, and this Wiki is dedicated to this technique.

The better way – which is taught to all MBA students, and used by professional investors – is not easy. But it is one of the few investment techniques that actually does work. The better way requires you to find errors in the consensus forecasts of revenue and EPS.

Until the creation of this Wiki, it has been virtually impossible for an individual investor to develop accurate non consensus revenue and earnings forecasts because no one individual has had enough information to accurately out-forecast the Wall Street analysts.

However, by using the Wiki to pool together the collaborative intelligence of large numbers of individuals who are familiar with the BUSINESS SERVICES Industry, with METAVANTE TECH, and with its suppliers and customers, we as a group do have a realistic chance of finding that nugget of accurate non-consensus information.

Warren Buffett finds these nuggets. This Wiki can help you find your own nuggets.

But this process can only work for those companies and industries with which you are very familiar. To apply this process to METAVANTE TECH, you need to focus on 2 questions:
  • Do I agree with the consensus estimate of the future revenue of METAVANTE TECH?
  • Do I agree with the consensus estimates of the EPS of METAVANTE TECH?

How Can I Find Errors in the Consensus Forecasts for METAVANTE TECH?


How Can I Find Errors in the Consensus Forecasts for METAVANTE TECH?
The following sections are designed to help Wiki users identify errors in the consensus revenue forecasts for the major METAVANTE TECH products. Below each consensus revenue forecast is a Wiki section reserved for users to discuss why these consensus forecasts may be high or low.

All consensus forecasts are provided by Zacks Investment Research.



Consensus Forecast of METAVANTE TECH Revenue in Millions
Fundamental Charts

MV Stock Chart by YCharts

2007A 2008A 2009E 2010E Annualized Growth

Dec-07

Dec-08

Dec-09

Dec-10

10/07

$1,598.12 $1,707.27 $1,753.92 $1,829.41 4.6%
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Consensus Forecast of METAVANTE TECH EPS
2007A 2008A 2009E 2010E

Dec-07

Dec-08

Dec-09

Dec-10

$1.56 $1.38 $1.62 $1.74
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What if I Agree with Consensus Forecasts?


What if I Agree with Consensus Forecasts?
You Can Still Make an Effective Investment Decision

If you agree with the above consensus forecasts of revenue and of EPS, you can still make an effective investment decision by determining that a relative valuation metric is out of line.

Perhaps because of events taking place in the industry, or with other companies, you may feel that METAVANTE TECH is either undervalued or overvalued, should the consensus estimates of revenue and EPS be realized.

This section of the Wiki helps you think about valuation by comparing METAVANTE TECH to some of its peers using a number of standard relative valuation metrics. This section also includes a simple discounted cash flow model for METAVANTE TECH based on the consensus forecasts.

The following table should be your starting point. This shows P/E, P/Sales, and P/Cash Flow for METAVANTE TECH and for comparable companies.




INDUSTRY COMPARABLES

Revenue (mil)

Net Income (mil)

ROE

EPS Gr 5Yr Est

P/E F1

P/Sales

P/CF

MV (METAVANTE TECH)

$1,725.00

$167.59

43.3%

11%

19.29

2.2

11.7

Industry Mean

9%

15%

19.88

1.1

6.5

S&P 500

28%

10%

18.65

1.7

10.3

ASF (ADMINISTAFF INC)

$1,714.00

$35.19

16.3%

15%

24.02

0.3

9.6

SFN (SPHERION CORP)

$1,885.00

($128.53)

0.4%

9%

0.2

1.5

MPS (MPS GROUP INC)

$1,912.00

($271.24)

4.6%

9%

108.39

0.5

10.2

CF is operating cash flow plus after-tax interest expense.

Discussion by Wiki Users of Relative Valuation
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Dividend Discount Model for METAVANTE TECH

The two major techniques used by fundamental analysts to evaluate the value of a stock are the relative valuation metrics such as PE discussed above and the dividend discount model (DDM) or discounted cash flow model (DCF).

More information about these valuation-related topics is available here.

This reference answers most of the questions investors have when they first encounter these discount approaches to determining value, such as:

  1. What is the discount rate?
  2. Why does the DDM discount earnings and not dividends?
  3. How can I use a DDM if the company does not pay dividends?
  4. How do I set the terminal value? (applies only to DCF)
  5. How do I calculate cash flow to use the DCF model?

What Do Insiders and Institutional Owners Say about METAVANTE TECH?


Insiders and Institutional Owners Discuss Issues Here
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Industry Analysis


Industry Outlook for Major BUSINESS SERVICES Companies

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The firms believes that the profitability of the companies depends largely on the special expertise that they provide to the clients. Large companies can offer a variety of services to the big customers. Small companies can easily coexist with large ones if they have expertise in a highly specialized area or industry.

The biggest threat to the IT services industry is the ongoing economic slowdown and global financial crisis, as a slowdown in economic activity as well as manufacturing impacts IT spending of companies. The firms believe that the economic slowdown will continue for some more time and expect the Company’s financial service segment to be hit hardest. In the near term, the firms believe the impact of fluctuation in exchange rates will be more severe, as over half of the Company’s revenues are generated from outside the US.

The firms believe that IT demand may start seeing the bottom in 2HCY09 and the situation will likely begin to improve as of 2Q10 for the IT Services companies. In the event of an economic recovery in FY10-FY11.


Last edited Tue Aug 25, 2009 04:49 PM
by RJha (Zacks Investment Research)
METAVANTE TECH Role in the BUSINESS SERVICES Industry

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Company Specific Investment Issues


The issues discussed in the sections below generally comprise the bulk of the content in a typical research report. Understanding these subjects is certainly important when making an investment decision for METAVANTE TECH.

However, to provide the most value to Wiki users as you read and contribute to these discussions, please try and tie your comments back to their specific impact on forecasts of future Revenue, Net Income, EPS, or Cash Flow.

Discussion about Capital Structure / Solvency / Cash Flows Issues
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Discussion about Governance / Social Responsibility / Treatment of Employees
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Acquisitions/Divestures/Joint Ventures/Hot New Products/Exciting Opportunities
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Blow the Whistle
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Discussion about Upcoming Events to Watch for That Will Impact Stock Price
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Discussion about Major Risks
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Created by: WikiMigrationBot. Last Modification: Wednesday 19 of August, 2009 10:23:04 CDT by WikiMigrationBot.