LYC 0.26% $7.77 lynas rare earths limited

what will the p/e ?, page-5

  1. 906 Posts.
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    Hi BM - as other posters have alluded - no science except look at what other similar co's trade at and whether market then views them as under/fair/over valued at the pe.

    different industries have hughly different pe's - pharma can have pe in the 20-50's, defensives 10-15, plus div payout ratios can also have an effect, etc

    lyc is moving into producer status where pe different from explorer. and i'd use 22kt instead of 11kt - as last presentation states that we will be at stage 2 capacity by next qtr.

    looking at another thread where i think Patts had current share price of .60 as 2014 pe of 5x and 2015 pe of 2x - which simply means that as lyc moves to full production - current sp is extremely cheap and patts price target was $2.08 (from memory).

    my personal opinion is to use 10x as conservative estimate with current ree price and if forward price estimates trend up/down lyc pe should follow suit.

    as i've said - not scientific, but good working guesstimate.

    hope this is useful....
 
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