Hi @sbondar
Barring a collapse in oil pricing , I agree with your analysis.
Current EPS is 0.34 cents and 2024 will be similar, with a smaller earnings contribution in the first half, boosted by a large uplift in Q4.
The market seems to be comfortable valuing BRK at these levels and ratios considering the SP range over the past 12 months has been between 1c and 1.5 c, which give a PE range of 2.9-4.4.
As earnings increase and if the PE stays withing the range of 2.9-4.4, then as you say, it is logical we should see the SP range accordingly. If that is the case then BRK will rerate even without an uplift in the PE.
In that basis the only way the SP won't rise as EPS rises, will be if the market decreases the PE . This would mean BRK would be even more undervalued.
Always a possibility as the market does what it does.
Time will tell
Hi @sbondarBarring a collapse in oil pricing , I agree with your...
Add BRK (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
1.2¢ |
Change
-0.001(7.69%) |
Mkt cap ! $57.27M | |||
| Open | High | Low | Value | Volume |
| 1.2¢ | 1.2¢ | 1.2¢ | $22.67K | 1.889M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 7 | 3105529 | 1.2¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 1.3¢ | 27732800 | 36 |
View Market Depth
| Last trade - 15.50pm 24/07/2024 (20 minute delay) ? |
| BRK (ASX) Chart |