I am a bit gob smakked by the current price of EHL so I thought I would throw my calc's on the table. Maybe i have this wrong so feedback is welcome!
Calcs are base on last Financial report:
Shares outstanding 726.5 Mill
Profit/NPAT/Earnings: $ 56.1 Mill (I am using $46.1 just in case there was a lazy 10 Mill from non-core income). Previous years Profit was $22.6 Mill so ASSUMING Same rate of profit next year will give 102 % ! I think that again i need to be pessimistic so i have salsed the projected earnings again down to a mere 50 % (lol).
With the above i have the EPS at a range of 0.071 to 0.084 (curretn date and 5 months ahead). Using a reasonable PE of say 14 (Sector is 13.98 and allords 14.06) gives a share price that should be about $ 1.65. The current PE of the co is in fact around 17.8. So I have plenbty of margin and think that the $1.65 is VERy VERy conservative.
Q. Has any1 done any similar calc's ? To me the current SP is a bargain - or am i missing something ??
EHL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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