Your $50m of earnings would lead to a PE of under 4 if you hold today’s price as a constant. If you project a PE of say 16 then the SP would exceed $5 assuming NTC management has been able to establish long term growing future earnings for the company. If the management hasn’t been able to achieve and articulate this then they should be removed. This earnings growth criteria should be the key performance indicator for remuneration bonuses. Currently remuneration performance measures are highly subjective and easily achievable.
NTC Price at posting:
$1.33 Sentiment: Hold Disclosure: Held
