Does anyone have some thoughts as to the possibility of a re-rating of the Price-Earnings multiple FMG trades at?
Right now, FMG trades at about 10.7x last years earnings. Rio is trading at about 11.3x and BHP 16.5x. If FMG were to be re-rated by the market up to BHP mulitple levels, that alone would take the share price to $37ish. Then factor in that I am still basing that on last years earnings, and given the sustained high IO price, this year's earnings are certain to be higher, meaning that the multiple we are trading at is actually lower still than the 10.7x on last year's earnings.
Does anyone have a view on why FMG trades at a lower multiple than the big two (diversified earnings??), and what could be the catalyst (other than a whopping upcoming dividend and maybe special dividend) to re-rate it higher to BHP-type levels?
Iron ore price, page-26388
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Last
$20.10 |
Change
0.700(3.61%) |
Mkt cap ! $61.88B | |||
| Open | High | Low | Value | Volume |
| $20.26 | $20.49 | $19.94 | $337.2M | 16.71M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 38056 | $20.09 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $20.15 | 20000 | 1 |
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| Last trade - 16.10pm 27/09/2024 (20 minute delay) ? |
| FMG (ASX) Chart |