Even after accounting for the slide in peers' valuations, investors have sliced close to an extra $13 billion off Anadarko's market capitalization, leaving it worth some $22 billion.
We have increased our target price to 1,050p to reflect the increase in peer group valuations.
Macquarie said: Although we continue to remain cautious on the company's longer-term prospects and peer relative valuation, Ferrexpo currently has the greatest operating leverage amongst our European pure play coverage universe and the lowest company-specific risk in the near term which positions the stock well to benefit from a year-end rally in the iron ore price to around $150 a tonne.
It consists of and builds upon specific elements from well known and peer-reviewed valuation methods for resource valuation.
URS Corporation, an engineering services firm, has an estimated 2001 P/E of 5, compared to an industry average of 21. "URS is selling well below its peers in valuation, and is very well run and stable," says Fritz von Carp, an analyst at Merrill Lynch, and one of the two people actively following the stock.
In a buy note on Experian UBS said: We still find the valuation attractive relative to slower growing peer Equifax, historical valuation levels, our fundamental discounted cash flow valuation, and given what is now a more compelling cash return story.
"At 16 times our 2005 core EPS estimate, McDonald's shares trade in line with peer S&P Core Earnings valuations," the firm said.
However, the descriptions of the peer review contained positive valuations without any explicit connection to effects of any kind.
Long term earnings per share compound annual growth rate is low versus the peer group while the valuation remains at a premium.
