Hi Werd,I have increased EPS by 5% from 2023 to 2024, which is...

Hi Werd,

I have increased EPS by 5% from 2023 to 2024, which is probably too generous.

The company has said at page 11 of its 1H23 results presentation that the compound annual sales growth rate going forward over the next 3 years will be 8.5% per annum. Thus I have probably overstated EPS (profit) growth for 2024. it will be less than 5%. Probably 1 - 3%.

Have a look at Jossette's recent post and you will see where we are both coming from.

I am comfortable with her forecast, but the higher price is skewered to the end of the compounding term, i.e. 2026.

When you plug all of this into an excel spread sheet you will see returns accelerate towards the end of medium to longer terms.

That's why most brokers model 5 years forward and discount back to todays value.

We should all be running our own spreadsheets on this stuff instead of guessing where the price is going.

Every one on this forum should be able to calculate their estimate of share price in 12 months time and the basis for it.

Or why buy the share, you will get smashed by algos that know exactly what they are doing. Algos will run up to a maximum programmed price then dump the shares.

Werd, keep your good posts coming, I always read them and learn something.

I am heading off for a walk now.