Let's have a look at the most used metric in investing circles the PE ratio . The PE ratio is calculated by dividing the share price by EPS which is earnings per share. The banks telcos or companies with steady earnings usually trade on PE multiples between 10~15 based on market sentiment at the time. Growth companies command higher PE ratios such as amazon Tesla facebook. In Australia at the spec end companies such as TNT WHK BRN DW8 NZS are still earnings per share negative or slightly positive. These companies if and when they do at all become cash flow positive will trade on PE ratios between 50~100 based on future growth prospects. Now let's look at CXZ. It's EPS for 2020 was 0.35 cents per share. At last traded price of 2.6 it's PE ratio is around 7. If you invest looking for value as I do then this stock is massively undervalued on current earnings and the SP does not reflect any future potential earnings upgrades from new contacts or takeover premium.
CXZ Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)