I am participating in the Value Ideas Contest at GuruFocus.com. I have submitted my long thesis on MakeMusic (MMUS) for the same.
MakeMusic, Inc. founded in 1990 develops and markets proprietary music technology solutions under the Finale and SmartMusic brands. The company’s products provide alternatives to traditional practice, education, and composition techniques. Its software product sales are made through traditional distribution channels and MakeMusic’s Web sites.
MakeMusic with a market cap of $24 million had sales of $17 million in the last 12 months. It has $10 million in cash on the balance sheet giving an Enterprise Value of $14 million. MMUS produced free cash flow of $2.8 million in the last twelve months. On an EV /FCF basis, MMUS trades extremely cheap at 5 times. The lowest FCF in the last 3 years was $2 million.
The entire analysis can be read on GuruFocus.com
Disclaimer: Long MMUS at the time of this post.