HempCFO: "A good rule of thumb, from finance 101 class, is that P/E should equal the annual growth rate."
Finance Basics would have said there are multiple methods of valuations.
For EOF, more appropriate method may be taking the present value of future earnings (normalised, maintainable, after costs), after adjusting for risks (according to personal analysis).
For us, it produces a value > $6.00.
This does not sound as simple as PE = Growth.But hey, making money is not so easy.
Cheers
News: EOF Ecofibre Says Currently Expects HY NPAT Will Exceed FY Result For FY19, page-19
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