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,Overall we rate EnerSys` risk level as medium.We estimate the revenue and earnings to be generated by a company over the next ten years.We look at the risk involved in the business, look at the assets and liabilities, and we discount the value of the future earnings according to risk level.For companies with medium to high risk levels, we discount the value of future earnings more aggressively.Finally, we compare the value of those future earnings to the stock price.Are the shares or are they expensive? Conclusion Buy Our recommendation is to buy given a target price of $26.Enersys is not an exciting investment, but the management has shown a consistent ability to stay focussed on a strategy, hunt down acquisitions without disruption, and to generate profits under a wide range of conditions.
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