Comparing SUM and RYM's forward underlying PE
As previously posted, SUM's forward PE for YE 31/12/2017 based on my forecasted underlying profit of $70m is 16.2.
Ryman made $158m underlying profit in the year ended 31 March 2016. If they can achieve 15% underlying earnings growth to be announced later this month they will make $181.7m underlying earnings in the year to 31 March 2017 and if they can generate another year of 15% underlying earnings growth for the subsequent year they will make $209m in the year ended 31 March 2018 which on 500m shares on issue = Underlying earnings of 41.8 cps.
At $8.69 a couple of minutes ago this puts RYM on a 31 March 2018 forward PE of 20.8 which is the cheapest they have been for several years.
Given their respective growth rates over the last 5 years a fair question to ask is does RYM's track record warrant a PE premium to SUM ?