I tried to summarize SLP Resources past years earnings and PE based on table attached. May I seek your comment that –
- is the data make sense to you from a quick glance?
- If assume that data source are somehow correct and I did correctly (hopefully), it seems that fair value (FV) of different time span shown obvious gap. It also my understanding that SLP doesn’t demonstrate steady/predicable earning from the past, due to bottom line are hugely affected by external factors like currency and raw material fluctuation.
- With those factors taken into considerations what would be you suggestion of based fair value and margin of safety to be used?
- to be more conservative i haven’t included net cash position into fair value calculation
The 5 years figure does not make sense as their latest 5 years earnings are boost by RM depreciation and low raw material price. I think your 10 years and Full year mean FV make sense.
From your 10 years FV, I will probably wait for 10-20% margin to buffer any error I may have missed out.
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