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12-07-2013, 09:19 PM
(This post was last modified: 12-07-2013, 09:25 PM by Underdogger.)
Current cash level = 38.5 + 29 - 10 = 57.5 mil (post 1st round of dividend payout).
or 13 cents of cash.
Current share price = 30 cents.
FY12 EPS = 3.37
Valuation of underlying business = 17 cents / 3.37 = P/E of 5.
Is New Toyo underlying core business only worth P/E of 5?
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Based on 1Q-2013 results, net profit (attributable to equity holder) has improved by 51%.
Lets assume full year EPS for 2013 will improve by 20% = 1.2 x 3.37 = 4 cents. (conservative)
Tien Wah P/E = 7.68 (trailing). Say we apply P/E of 7 to New Toyo. (conservative)
Valuation of New Toyo = 7 x 4 + Cash = 28 + 13 = 41 cents. (conservative)
or 13 cents of cash.
Current share price = 30 cents.
FY12 EPS = 3.37
Valuation of underlying business = 17 cents / 3.37 = P/E of 5.
Is New Toyo underlying core business only worth P/E of 5?
****
Based on 1Q-2013 results, net profit (attributable to equity holder) has improved by 51%.
Lets assume full year EPS for 2013 will improve by 20% = 1.2 x 3.37 = 4 cents. (conservative)
Tien Wah P/E = 7.68 (trailing). Say we apply P/E of 7 to New Toyo. (conservative)
Valuation of New Toyo = 7 x 4 + Cash = 28 + 13 = 41 cents. (conservative)