AutoInfo (OTC:AUTO) is significantly undervalued. At a price of $1.06, you risk a loss of about $0.01 (with a $1.05 deal on the table) and could be rewarded with $1.00 of gain from here (to the low end of the range of its fundamental value).
Share price based on actual financial performance and competitive multiples
Based on a 12% yield on market capitalization and a revenue growth rate of 10 to 15% declining linearly to 2.5% in 5 years. The value is based on actual financial performance over the last 8 quarters.
Share price of $2.47 to $5.39
Share price based on PE of competitors of like revenue growth PE = 18 to 27
Share price of $2.10 to $3.15
Share price based on multiple of book value of 5 to 6
Share price of $4.10 to $4.92
Share price based on multiple of 20x free cash flow
Share price is $5.15
Disclosure: I am long OTC:AUTO.