Choose a reasonable PE for the sector lets say 15.5.Choose no of...

Choose a reasonable PE for the sector lets say 15.5.
Choose no of shares outstadning lets say about 931 million shall we. Lets take the last reported earning of 1064 million shall we and oh yeah, lets just subtract the 200 mill for Sydney storms for good measure (of course we should not do that as their earning are up since last report and the Sydney storms were partially factored into their risk pool anyway .... but let just do this anyways) and lets see what sort of SP we should expect.
A reasonable an IMO conservative EPS is about $1.5.

SP range:

EPS $ 1.5, PE of about 13 (conservative)woould give a SP of about $ 19.35

Trouble is that the above does not allow for increased earnings. Lets say earnings continue (as they have done in the past) at about 10 % per annum (which does not allow for even more upside from recetn mergers and acquisitions)
Then we get say

EPS $ 1.64, PE of 15.5 (reasonable), SP of 25.5

So there we have it, the instrinsic value of SUN lies somewhere in the above range !

DO U RECKON THIS IS A BUY ? Possibly not in the short term but that is due to the TA and what the graphs show you. IMO what the graphs show is current sentiment not the value. Lets see what happens. I reckon if the Subprime sentiment settles down SUN will shoot