I'd done some work a little while ago regarding the subject of this thread and thought I should offer my notes
The first three columns represent the numbers for the financial year 2022 analysed between "normal" and covid revenue. These numbers were available from their Annual report. I established the Normal Gross Profit at 38% which is around the number that had been achieved for several years before Covid came along. I plugged in the balance as Covid Gross Profit - the 61% I came up with is around the number suggested by analysts reports so I suspect it's about correct. The last three columns are my estimates of how 2023 might look. To come up with these numbers I've increased Normal revenue by 7.5% and suggested that Covid revenue will be about $500,000, so down from $2,400,000 in 2022. The profit that flowed from these estimates suggests that at a $30 buy in price, the P/E ratio would be about 15 for the 2023 year. For a company that has a solid growth history, a P/E of 15 is not bad. Everybody has their own idea as to what the correct numbers should be for 2023 and I have no real support for my theory that Normal revenue will increase by 7.5% or that Covid revenue will be $500,000 but I guess you have to start somewhere.
SHL Price at posting:
$32.29 Sentiment: Hold Disclosure: Held
(20min delay)