I'm going to have to disagree with the undervalued sentiment on BCO.
2009 numbers seem to be artificially inflated by Brink's Deferred Tax Asset Valuation Allowance. Although I don't fully understand how it is calculated each year (just havent spent enough time in the 10-k), it propped up their net income and cash flows numbers by ~$60m.
From the latest 10-K: "The effective income tax rate for 2010 is expected to be between 36% and 39%." This seems consistent with historical numbers and I believe makes a big difference in the valuation:
DCF: 70m, 0% growth, intrinsic value: $14.90
Owner's Earnings FCF numbers are extremely erratic over the past 10 years – very hard to pick a growth rate with any confidence. 2009 Operating earnings were ~160m. After using a normalized tax rate, I recalculated OE_FCF to come up with the 70m number.
EPV: adjusted income of 275, intrinsic value: $16.45
EPV (income tax adjusted to 37%): adjusted income of 219.2, intrinsic value: $4.48
Just my opinion. How do you normally treat huge fluctuations in income tax expense?
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