Australia's largest stock trading and investment forum Australia's #1 stock forum

ALU

Click for more information

0.00%

$68.33 altium limited

ALU's Trailing PE = 70, page-2

First 2 Last

Share
Profile

Follow
zwu

2,452 Posts.

9

22/02/18

15:55

Post #: 31263043
Share

Originally posted by zwu ↑

According to the official reports, ALU's EPS of FY2017 is 21.70 usc or 28.18 auc. So its present trailing PE = $19.62/$0.2818 = 70x. Reckon this PE value is much too high even for a stock with an earnings growth rate of 50% p.a. as ALU claimed for its 1H2018 result.

Yes, ALU's 1H2018 EPS of 11.48 usc is 50% higher than 1H2017's 7.48 usc, but it is 18.3% lower than 2H2017's 14.06 usc. So the EPS is actually going backwards half-yearly.

The true long-term growth rate for ALU is just ~25% p.a..

So I reckon the stock is at least ~50% over-valued at present.

Expand

A price correction should be imminent.

ALU Price at posting: $19.63 Sentiment: Sell Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

GL1

Global Lithium latest hit by lithium downturn; shares fall -10% as Manna DFS paused

FRB

Firebird snaffles Environmental Permit for Jinshi plant

FBR

FBR's robotic home construction tech passes first US early-stage structural compliance check

SDF

Steadfast Group sees $600M wiped off on resumed trades after Four Corners feature

DUR

Duratec snags $76.5M in works from Woodside and Defence respectively - including spy network upgrade

There are more pages in this discussion • 76 more messages in this thread...

First 2 Last

Add ALU (ASX) to my watchlist