JAT is target 0.15 ?, page-53

I’ve been intrigued with peoples projections (wild stabs) of JAT’s potential future share price, and I have no idea how to pluck such numbers. That said, I couldn’t resist having a stab now that we are hopefully entering a stable period of profitability. My idea is to reverse the PE ratio based on the average of a bunch of FMCG companies. I listed 12 arbitrary FMCG companies (SML, BAL, A2M, BUB, AHY, MET, GNC, CCL, BEL, CGC, BGA, WOW) to get the average PE ratio of the list. I also got the average PE ratio of positive earning companies within the list (since 3 co’s had -ve PE ratios). Averages were 16.49, and 24.75 respectively. And if I multiply these averages by .02/.03/.04 EPS (annualised) I get 33c, 49c, and 66c JAT share price to meet the FMCG average PE ratio. And, 49.5c, 74c, and 99c JAT share price to meet the ‘positive PE’ only FMCG average PE ratio.

Clearly, there are many other factors involved, but this may indicate potential average share price ranges for JAT this year based on EPS in respect of average FMCG PE ratios.

Happy for people to pull the logic apart. I only thought this up while painting the windows this afternoon!