I just did a valuation of PTM using "ROE/expected rate of return x book value" Here is what I got Av ROE over 8 years = 51% expected rate of return = 12% Book = $0.59 interestingly this company does not reinvest any of it earnings ie it pays out 100% as divi which makes calculations easy. No Barenjoey or Guzman and Gomez I suppose. Payout ratio = 100% .51/.12 = 4.25 which gives you the multiple 4.25 x 0.59 = $2.51 margin of safety of 25% = $1.88 the stock is trading at $2.70 today, basically overvalued by 44% MFG is $21.24. Intrinsic value is $24.82. UNDERVALUED by 17% which would you prefer PTM or MFG now????
MFG Price at posting:
$21.24 Sentiment: Buy Disclosure: Held
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