I am now much more confident that Acrow will achieve another year of high growth. However, as I try to be conservative with my estimates, I will assume for the calculations below that the EPS growth rate is only 25% in FY25, compared with CAGR of > 50% over the last 3 years (see my earlier post on 25 August: Post #: 75362590).
Based on this assumption, EPS for FY25 would be approx. 12.4 cents (using my own normalisation that I explained in that earlier post). At a share price of $1.10, that equates to a FY25 P/E of 8.9.
As I have also previously stated, it is inconceivable to me that Acrow is on a sub-10 forward P/E given the very high levels of profitability and growth rates over the last four years. IMO, it is a growth stock valued as if it had no growth.
If the market was to give Acrow a more realistic but still conservative P/E of, say, 12, then that would mean a share price of $1.49.
If this pans out, then the share price would be 35% higher than now.
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