ADH 2.99% $2.07 adairs limited

No-one Interested, page-16

  1. 291 Posts.
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    assuming management's estimates of a ~15% decrease in EPS for FY17 then at current prices ($1.28) the P/E is ~9x and div yield is 9%. Even if EPS decreases by 30% for FY17 the P/E will be ~11x. At $1.65 P/E ~14x. So i guess it is not grossly over valued even if earnings are worse than expected, unless there are other unforeseen issues with the company. As long as earnings downgrades don't continue into 2018, it could present some good buying opportunities if the price falls further.

    PS. these are just my thoughts and not advice.
 
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