The right PE for Turners?
Quote:
Originally Posted by
Snoopy
No. Shares on issue EOFY2017 |
|
74,523,527 |
No. Shares Sept 2017 Placement |
$25m / $3.02 = |
8,278,146 |
No. Shares Sept 2017 SPP |
$5m / $3.02 = |
1,655,629 |
Post capital raising total No. Shares |
|
84,457,302 {A} |
Guidance for FY2018 is for NPBT of $29m - $31m
Guidance for FY2018 is for NPAT is NPBT x 0.72 = $20.9m - $22.2m {B}
Forecast 'eps' based on the number of shares at the end of the financial year is therefore {B}/{A} which translates to a range of:
24.7c to 26.3c per share
I know this doesn't take into account the 'weighted average number of shares' that Beagle asked for, but I have my reasons for not doing so.
The equivalent figure for FY2017 was:
$17.609m / 74,523,527 = 23.6cps
Quote:
Originally Posted by
winner69
Surely at $3.02 though
At $3.02, TRA is on a projected PE ratio of between:
302/26.3 = 11.4
302/24.7 = 12.2
I don't think it is fair to categorize TRA as a dog. There is still a good business waiting to get out under the recent 'share'nanigans. But I think it is true that it is probably not a good idea to pay too much for the shares. The real question for investors must be 'what is fair value'?
$3.40, with the benefit of the capital raising hindsight, which to be fair was not transparent to the many who took shares at $3.40 for what appeared to be a 'generous discount', looks a bit rich to me. But $3.02? I am feeling a bit warmer towards that price. Yet there is a risk that $3.02 is not cheap enough.
SNOOPY