Telstra trades on a p/e ratio of 15.1 based on ATC announcement of 2 July 02 when acquiring FNT.
If we assume say NO FNT and say 180 million shares on issue after any capital raising. We get
You say a price of 18c to 20c. Lets say 20c
Lets say a p/e ratio of 13 to be more conservative.
This gives us eps of 1.5c.
Based on 180 million shares, I guess you are estimating profit of around 2.8 million a year. I guess that sounds fair enough given that they are recently EBITDA positive.
Only problem I feel is that any future contracts with China will be at lower margins and as a result more turnover will be needed. Imperative FNT is finalised to make good use of favourable contracts.
ATC Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
