RHT’s Uniform Adjusted EPS’ is expected to remain well above traditional EPS, suggesting investors may believe incorrectly that the stock is expensive

• RHT’s profitability is materially distorted by accounting for stock options and R&D

• As such, their UAFRS EPS’ is expected to reach $3.17 in 2018, nearly double projected as-reported EPS of $1.64

• After making the appropriate UAFRS adjustments, RHT is trading near peer averages, at a 29.6x Uniform P/E, below average valuations of US-based Systems Software companies, suggesting the firm is likely fairly valued at worst

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Submitted June 20, 2017 at 08:34PM by Valens_Research http://ift.tt/2syCa2p