Pretty much the entire rally from $14 to $23 was a PE re-rate, it was not driven by an increase in earnings expectations as the average price assumed by analysts has not changed (materially). As of yesterdays, FMG's blended forward 2 year PE was 14 which is one of the highest multiples FMG has traded at over the last 7 years... and now we have IO prices plunging again.
A forward PE at this elevated level just has no respect for the uncertainties FMG faces, its priced as if it is assumed that 100+ IO prices will remain and cost pressures will remain under control and FFI just works itself out.
To get back to a more normal 2 year blended forward PE of about 11, without an increase to earnings, would require a share price fall of about 20% from recent highs. That is why I believe FMG is overpriced here.
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Last
$21.41 |
Change
-0.260(1.20%) |
Mkt cap ! $65.92B |
Open | High | Low | Value | Volume |
$21.52 | $21.67 | $21.30 | $150.5M | 7.000M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 93 | $21.40 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$21.41 | 12657 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 93 | 21.400 |
2 | 3150 | 21.350 |
1 | 200 | 21.330 |
2 | 1046 | 21.320 |
1 | 1000 | 21.310 |
Price($) | Vol. | No. |
---|---|---|
21.420 | 1200 | 1 |
21.450 | 1500 | 1 |
21.510 | 2020 | 1 |
21.520 | 951 | 1 |
21.530 | 1500 | 1 |
Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
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