THE FOLLOWING IS COPPIED FROM SHARESCENE BY A POSTER CALLED AIMFORSIMON. (HOPE YOU DON'T MIND):
There have been a lot of questions around the rise in TOX recently so I have had a look at TPI (Transpacific) valuation as a comparison to TOX. While I am sure there are some arguments why TPI should have a higher PER (size) I would argue the recovery growth in TOX would justify at least a similar PER rating given they are in same business segment but TOX is growing faster due to the reconstruction and monopoly license in WA. Also TPI has a lower PER business in its trucking business so the implied valuation for the waste business is actually higher as a % of the total valuation......
Price : 0.07 FY05F FY06F FY07F Sales 6 8 13 Profit 0.30 3.00 6.00 Diluted EPS 0.003 0.006 0.012 PER 23 x 12 x 6 x PER (TPI.AX) 31 x 21 x 16 x Valuation (ords) 0.09 0.12 0.19 Valuation (Options) 0.06 0.09 0.16
I think an early price target of 12 cents for the ords is conceivable and 0.09 cents for the options. Then over the next few months a rise to 20 cents is doable. Still looks good of the medium term IMHO. AFS.
TOX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held