Hi @Tamborine
Definitely higher than multiples of 11. I assume that you mean the PE ratio (i.e. Price / earnings).
I consider LVT a high spec small cap. A very smart one at that.
I wouldn't speculate a number, however I do understand why you are asking.
Found this of relevance;
P/E ratios can be interpreted in different ways.
A high P/E ratio may indicate that the stock is expensive; that is, its price per share is very high compared to its EPS.
Conversely, a lower P/E ratio may indicate that the price is cheap relative to its earnings.
These ratios can also be misleading and it is often difficult to use them in an investment making decision.
Therefore, it is important to break down why a company has a low or high P/E ratio.
For example, a low P/E ratio could be an indicator of poor performance by the company – however, cheap prices may not give a good dividend yield or capital gain.
With regard to high P/E ratios, market sentiment and overreaction may have pushed up the price of the stock over and above its fundamental value.
The reason for this may be excellent earnings which the market did not expect whilst the market is generally in a bull run.
Source: https://www.australianstockreport.com.au/education/pe-ratios/
The next LVT quarterly report - which must be out soon enough (perhaps Jan end, will be very interesting!
All the best
Gracie
