I just did a valuation of PTM using "ROE/expected rate of return x book value"
Here is what I got
Av ROE over 8 years = 51%
expected rate of return = 12%
Book = $0.59
interestingly this company does not reinvest any of it earnings ie it pays out 100% as divi which makes calculations easy. No Barenjoey or Guzman and Gomez I suppose.
Payout ratio = 100%
.51/.12 = 4.25
which gives you the multiple
4.25 x 0.59 = $2.51
margin of safety of 25% = $1.88
the stock is trading at $2.70 today, basically overvalued by 44%
MFG is $21.24. Intrinsic value is $24.82. UNDERVALUED by 17%
which would you prefer PTM or MFG now????
MFG Fair Value, page-130
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Last
$10.57 |
Change
-0.160(1.49%) |
Mkt cap ! $1.953B | |||
| Open | High | Low | Value | Volume |
| $10.74 | $10.86 | $10.53 | $4.603M | 430.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 15 | 1425 | $10.56 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $10.57 | 554 | 12 |
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| Last trade - 13.10pm 19/08/2024 (20 minute delay) ? |
| MFG (ASX) Chart |