Dejavoo, FY14 Net Profit Margin was 40% and EPS was US$0.15. I...

Dejavoo,

FY14 Net Profit Margin was 40% and EPS was US$0.15. I also calculate 1H15 Net Profit Margin as 40% with EPS at US$0.12 (annualised at US$0.24/share).

For FY15, with Net Profit Margin at 40% over the remaining 2nd half I estimate full year EPS at c. US$0.26/share, assuming PoG remains at c. US$1200 until June.

At US$/A$ of 1.28 that translates to a FY15 EPS of c. 33c/share (so current share price is indicating a PER of just 3x).

The market will apply whatever multiple it wants, but 3x looks ridiculously low as MML returns to positive free cash flow. NST currently sits at a PER of 13.6x and EVN is 7.1x. So I would have thought a 10x multiple would be a reasonable starting point (ie a SP of A$3.3 at financial year end).
CPDLC