Buffett said that he likes to thumb though Moody’s Manuals and Value-Lines without looking at the price of the company.
You are sitting today in the library worried about central banks running their printing presses while flipping through your Value-Line when you see this
A company with $5.50 in after-tax free cash-flow. Sales and cash flows have grown about 9% over the past 10 years and are estimated to continue growing 6% over the next few years. Debt is 15% of total capital. Ret. On total capital has averaged 14.5% over the past ten years; return on equity has been 15% on average. R&D is 16.5% of sales (above average for its industry). Dividend yield is 4.4% and 42% of net profits. This company is considered one of the strongest in its industry and one of the top companies in the world–well-diversified internationally by geography and product type.
What would you pay per share ball park for this business? Take no more than 33 seconds.