BBI babcock & brown infrastructure group

implied pe ratio of new company on issue

  1. 128 Posts.
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    Tell me if I'm wrong.

    I figure the implied PE Ratio of the new stock to be 6 or less depending on how much you deduct from the $667M forecast EBIT for Interest and Tax.

    $M
    Equity/Price 1786

    Debt 3762

    Assets 5548

    EBIT 667

    Interest & Tax 367

    NPAT/Earnings 300

    Price/Earnings Ratio 6

    Given the industry standard ranges from 9 to 12, does this suggest that the stock could open up to 50% higher than the issue price or even higher.

    Looking optimistically to the sky

    Seahawk







 
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