Snapshot
Argo
5.13% dividend or 3.66% franked
Pe ratio 18.57
Realistic Pe ratio 14 or 7.14% return expressed as a percentage.
Bank rates rising to 3% to 3.5% return on fixed deposits.
Increased expectations of returns of 7% in ASX listed companies to pre covid level.
Expected fall in most asx listed companies to pe ratio of 14.
Market expectations of 3 to 4% above the bank rate to around 7%
Likely Consequence for ARG
Around 25% drop in share price.
Worst case scenario for ASX
1. Fall of pe to 14
2 Drop in profit of 30% in a recession
Worst case scenario for ARG Pe ratio of 10 $4.77
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