worley sp, page-5

Khal , my personal opinion is that it is at fair value .

Revenue forecasted , even at lower end of 320 million gives earning per share of $1.32 ( 242 m shares on issue)
that gives you a PE of around 19.6 currently at a share price of 26 .
average 5 year PE's is around 20 .3 .with high being around 28 and low around 13 ( 2009).
therefore it is at a very slight discount to the historical PE ascribed to WOR by the market.
dividend yield is approximately 2.94% assuming the drop in earnings . I am targeting a conservative 15 % increase in my investment year on year which means I am expecting growth of about 12% . Worley's return on capital and ROE has been around the 20 region.
Even if i think it is 15 that fits my targets.
So I think it is fair value and bought today. Anything lower is a bonus and gives me a margin of safety.
I think it depends on one's time frame. As others say, the earnings outlook may not be that bad as a us dollar reversal may occur providing a upside from here , which means a good outcome. please feel free to correct numbers if any discrepancies
cheers