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Originally posted by nevd:
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As an alternative submission to the NUH PE question, I generally like to consider PEG ratio, rather than PE for growth companies. The analysis doesn't work until the company is profitable and since NUH growth will be very lumpy, calculations will be very rubbery. The other complication to the analysis will be the tax losses NUH will be carrying forward and these probably need to be ignored.Putting these reservations to the side, for an established company, we could invest when PEG is less than approx 1.1 (when interest rates were much higher than now), but it should be lower for a profitable startup, say 0.8.So if we assume an earnings growth rate of 40% when NUH is profitable, then PE/G =0.8 = PE/40, so PE =0.8*40 =32 which tends to support earlier contributors, but buyers of APT or Tesla wouldn't agree with this conservative analysis.Since most of NUH profit is likely to be from HP buds which are a new product, then an earnings growth rate of 40% maybe very conservative for the next few years. On a related issue, when do people think NUH will be cash flow positive?
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Grear contribution @nevd
(20min delay)