BFC - What is it worth

Okay - Im trying to work out a "conservative" value for this stock right now.

I decided to do this based on what the company told us at the November AGM presentation:

FY 2016 Dividend of 1.5c to 2c
Payout ratio of 60% to 85% of earnings.

Scenario 1
Okay...so let's be conservative. Lets use a dividend of 1.5c and a payout ratio of 85%.

This would imply EPS of 1.764c (divy of 1.5c being 85% of this).

Based on a share price of 53c gives us a current PE of 30

Scenario 2
Lets be not so conservative. Lets use the 2c dividend and a 60% payout ratio.

This would imply EPS of 3.33c (divy of 2c being 60% of this)

Based on a share price of 53c gives us a current PE of 16 times 2016 earnings.

I guess that is a starting point.

Add to that potential future growth opportunities and then try and determine what one should be prepared to pay for a company with above trend growth and I guess you can start coming up with some reasonable price targets.

Certainly, there have been plenty willing to bail out above 50c this last 2 weeks but i can see further upside personally.