Should You Buy It? Maximus to the Max

Some investors who were hoping for a sale of Maximus(MMS Quote) recently may end up pleased the consulting company didn't go that route.

Maximus, which said Nov. 14 that it had completed a four-month strategic review with UBS as an adviser, originally considered selling some or all of its assets. But it ultimately decided to undertake a $150 million accelerated share-repurchase program, which is expected to add about 25 cents a share to annual earnings.

In addition to the repurchase, the company announced it will consider strategic alternatives for its non-core IT services and consulting divisions while maintaining its operations segment, the fastest-growing business. This division outsources services to government agencies in health and human services programs and generates about two-thirds of total revenue.

At Wednesday's closing price of $39.25, the stock is off 19% from its 52-week high. That is 14.3 times expected fiscal 2008 (ending September) earnings of $2.73, which is a 5% discount to the S&P 500.

With that in mind, I'm here to answer the question: Should you buy it? Does Maximus offer value at current levels, or will investors look elsewhere now that the entire company is no longer for sale?