Your calculations make sense to me, however I note that in FY16 the company reported 9c/share so at THAT time according to company accounts the PE ratio was ~5.5 (share price 50c). If FY17 is slightly higher in USD this year and roughly similar in AUD, then we are still around 5 times PE.
That's probably overly simplistic and in fact my spreadsheet is telling me to expect ~7c/share FY17 (so there is something mismatched between my model and the company accounts), equating to a 'trailing' PE of 7.6 times.
Regarding this year, FY18, yes...I've probably been overly pessimistic because as you point out there is a very good chance that the Star performs better (Q1 aside) than last year simply because the King won't die this year! Touch wood.
Conversely, I think you've been overly pessimistic in your EPS expectations.
So....hopefully we're both surprised to the upside!!!
P.S. If there are any accountants in the house, I'd love to hear your views on why FY16 report showed 9c/share but HY17 is only showing 2c/share. Gain on bargain purchase perhaps?
DNA Price at posting:
53.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)