>Is a share price today of A$6 worth a return per share of about $1.50 starting in 3 years time? It does seem undervalued to me...
Good post BB,
On a forward P/E basis assuming accuracy of your figures that means that EXT is trading at a forward P/E of a little over 4.
This is actually very normal for any company that is 3 or so years away from production.
As production draws nearer then that essentially means that the P/E can then rise up to 12 or more. This normally takes place when production is anything up to 1 year away.
The dollar per pound evaluation ONLY becomes valid in a takeover situation whereby full value has to be realised then and there for a sale price.
If a takeover offer is made then great! It can happen to any company out there so take your pick.
Good luck to all.
EXT Price at posting:
$6.31 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)