Let's cut through all the noise on here about the MD...

Let's cut through all the noise on here about the MD resignation, staffing issues, current MD, etc, etc, and have a look at what the company is actually worth:

Projected EBITDA of $27m in 2008. This should translate into NPAT of around $18m for the full year.

Now the company has 134m shares on issue so this is EPS of 13.5 cents per share.

Being conservative in the current market, and giving DWS a PE of just 12 values them at $1.60.

Projected dividends of around 10c per share this year gives them a dividend yield of over 10% at current prices, or a fully grossed up yield of 14%.

So can we say that DWS is clearly undervalued at these levels?

I have to say yes.

The big question mark is what will happen in 2009.

Considering the recent acquisitions they have made and new offices opened I find it difficult to believe they will post no growth into 2009.

In the company's history they have rarely(if ever) had a year of negative growth.

Let's be conservative and forecast no growth in 2009. That would make revenue $80m.

Taking into account the poor third quarter this year we can probably look at a higher NPAT margin of 24% (this is comparable to 2007).

That gives us NPAT of $21m in 2009. A PE of 12 values DWS at $1.90.

So IMO ridiculously undervalued at under $1.

Any thoughts?