Tradeshow Marketing Company is focused on developing proprietary products that are marketed through five strategic sales channels. The company’s high-end consumer products that are currently developing have universal appeal for their innovative and practical functions.
The company’s products are associated with healthy lifestyles and upscale living. Although their demographic targeted is consumers earning $50k or more a year, Tradeshow also targets mass merchandiser sales with some of its lower-priced items.
Tradeshow has a management team with in-depth knowledge of direct sales and franchising. The Company’s VP of Franchise Sales, Tim McCarthy, has over two decades of experience working for several major brands. In 1988, he partnered with Mail Boxes Etc. and was instrumental in overseeing the transition from Mail Boxes Etc. to The UPS Store. He also earned the prestigious “Domestic Franchise Sales Champion” award.
In conclusion of the report, the Senior Analyst stated, “Tradeshow’s peer group trades at forward Price/Sales multiples ranging from 0.9 times revenues to 0.2 times revenues and averaging approximately 0.7 times revenues. Forward Price/Earnings ratios for this group ranged between 14 times and 21 times earnings and averaged approximately 17 times earnings. Applying the peer group average forward P/E multiple of 17 times earnings to Tradeshow’s projected FY 2008 net income of $2.8 million (i.e. we assume a $4 million operating profit and a 30% effective tax rate), we derive a target price for Tradeshow shares of $2.40.
Let us hear your thoughts below: