Any thoughts?, page-6

re: any thoughts? yeh, i've got one Hi Vendor. I've done a basic valuation of Austin Group and I reckon its still pretty good value despite the recent share price rise. Here's my numbers.
Current price - 58c. I break this down as 10c per share cash and 48c for the core business. They are debt free and have no acquisition plans so the cash is not really needed.
I'm forecasting earnings per share (EPS) this year of 8c and I think that is probably a reasonable assumption. That gives me a prospective 2003 price earnings ratio (PER) of 6x. This is ridiculously low for a company growing revenue, NPAT and EPS at such a high rate. A PER of 12x would better refect their true worth.
A PER of 12x 8cents = 96c + 10c in cash = $1.06
I don't think these numbers are unreasonable but I may have missed something (don't think so). Feel free to correct any errors.

ps have taken into account lower seasonal earnings and unwinding currency hedges in the second half. Also profit from a property sale last year.

I hold ATG so check the facts.