Baldor Electric * NYSE (BEZ)

Baldor Electric – NYSE (BEZ)
Presentation by: Cole Stocking, Neal
Smith, & Darron Campbell
Basic Business of BEZ
• Major Products: Electrical Components to
include the following:
• Electric motors (both AC & DC)
• AC & DC Controls (Inverters, Microdrives, Integral
Tachometers, & & Lifting Magnets)
• Gear Products (AC & DC Gear Motors, Speed
• Market Share
• Baldor is the largest manufacturer of AC & DC
Electric Motors
• Account for roughly 13% of the Electrical
Component Industry
Industry Investigation
• General Growth of Industry
• Large increase in industry size following the Korean War
• Continued increase til early 2001 at which time industry
leveled off with frequent increases and decreases
• Position in Industry
• Assumes 13% of the Electrical Component Industry
• Considered Average amongst
• Average Growth Rate Compared to Industry
• From 1998-2008 – Baldor stock grew 6.3%
• From 1998-2008 – Industry grew roughly 9.3%
• Average Price Ratio Compared to Industry
• Baldor average P/E Ratio is 17.12
• Industry Average P/E ratio is 24.78
Fair Value of Baldor Stock
Current Price
• P/E Ratio
• P/CF Ratio
• P/S Ratio
• Baldor stock is undervalued
Buy/Sell Recommendation
• Buy Baldor stock based on the Price
Ratio Analysis on previous slide which
indicates that Baldor stock is currently
undervalued; therefore, we believe
that it will grow closer towards its fair
value by year end.

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