Royal Mail: the price of delivery It is the last posting date - and not even Christmas. UK ministers hope to unwrap a chunky present when a final price for Royal Mail shares is announced on Friday. Word late last week was that it will be set at the upper end of the anticipated 260p to 330p range. Investors have until Tuesday midnight to put in applications for the stock. Will they miss a bargain if they do not? Royal Mail's share prospectus was weighty but unsurprising. Which leaves investors with a now-familiar business case. The group faces a relentless decline in its letter volumes but has a parcel delivery business benefiting nicely from ecommerce. Modest sales growth looks possible, with good scope to increase margins - low by European peer standards - as mechanisation and efficiency benefits build. Net debt at the end of June was £800m, so enterprise value ranges from £3.4bn to £4.1bn over the indicated offer price range. That is 5 to 6 times 2012/13 earnings after transformation costs. Belgian's bpost floated in June on a 5.5 multiple. Austria Post trades on a historic multiple of 6.5. Royal Mail does not have post offices to run. But it faces labour unrest. And news that TNT will extend direct deliveries next month to customers in Manchester is a reminder of the competitive threats. Dividend yield is the other factor - an implied 7.7 to 6.1 per cent across the offer price range. Generous payout policies add no value, but they can suit some investors. Again, though, look at peers: bpost yields 7 per cent (on the 2013 consensus figure); Austria Post offers 5.5 per cent. Anyone seeking more than 4.5 per cent in the FTSE 100 will find oils, insurers and utilities as the main choices, most carrying some risk. Vodafone offers 4.6 per cent. At the low end of the price range, Royal Mail shares have some appeal. At the upper end, investors have other options.