SXL Time to Accumulate, page-253

Still just holding my 10% of the position accumulated during covid 2020. Not adding to the position yet. This stock got the stuffing knocked out of it with the massive dilutionary capital raise.

Because of that dilution look at future earnings. FY22 EPS expected to be around 16c rising to 21c in FY23.

Historically pre covid SXL traded in a PE bandwidth of around 9-12 times EPS.

On FY22 forecast EPS that would indicate a share price bandwidth of around $1.44 to $1,92
On FY 23 forecast EPS that would indicate share price bandwidth of around $1.90 - $2.50

So to justify current share price, those FY 23 forecast EPS need to come true (and its a big jump on FY22 numbers).