as i’m learning to apply this system of analysis to locate good companies, realised that in order to plot the PE graph shown during the webinar, i need to locate the PE values.
would want to ask, where can i find them? As i intend to analyse it for:
– Sheng Siong
Looking forward to a kind reply and guidance.
As mentioned by Tjung Wai, the instruction video can be found in the PE ratio segment.
Thanks Victor for replying!
So to follow up on this, I have followed the video,step by step to plot the PE graph for sheng Siong.
I have plotted and obtained the following values, based on 5 yr EPS ranging 0.025 in FY14 to 0.038 in FY19, and plotted from aug 2015 to today.
Average PE = 32.7
Median PE = 32.0
PE of 30th Jul = 45
1)based on what you have taught on PE, with the current stock price of 1.70 and average PE, would like to ask if the current PE seems to be too high above the average, and hence the price being too high to enter?
2)However, I searched the stock price on google finance, the PE ratio showed 22.5.So would like to ask, how do I reconcile this difference in PE?
3) in your PE video, you mentioned to calculate net cash per share. Do you refer to free cash flow per share?
1.For Sheng Siong, it is better to plot their latest 10 years PE chart instead of 5 years. 5 years PE chart are generally for companies who are growing fast where 10 years PE chart does not reflect their current new growth.
2.You should not compare PE but rather the intrinsic value against the share price. You should take the latest full year EPS multiply by the average PE.
3.The PE ratio shown in bloomberg are usually the trailing PE based on latest four quarter result. Do note that bloomberg PE ratio are not adjusted for excluding exception items. Hence, like I mentioned above, you should compare IV with share price not PE ratio.
4.The net cash per share is the total cash minus total debt. The net cash will then be added to the IV. Moving forward, we are probably going be more conservative in our valuation. Hence, you may want to exclude the net cash per share. Just use EPS multiply by average PE.
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