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Friday, July 30, 2010

How to Import PEGGY PE and Growth figure

Stock Price RM1.00

Earnings per share:
Year end Dec 2009  RM0.08 (Actual)
Year end Dec 2010  RM0.09 (forecast)
Year end Dec 2011  RM0.11 (forecast)
Year end Dec 2012  RM0.125 (forecast)

Example now is July 2010. You can use 2009, or coming year end 2010 forcast earnings because actual coming year end should be quite close to forcast.
RM1.00 divided by RM0.09 = 11.11x
So PE ratio is 11.11x

Growth is from what earnings you have used (RM0.09) up to maximum forcast you can get (RM0.125 year end Dec 2012).

RM0.035 for two years. So, RM0.09 grow 17.9% per year, for two years to reach RM0.125.

4 comments:

  1. good afternoon, i presume the eps mentioned is for one whole fiscal year right? if quarterly should be eps x4 (assuming 4 quarters per fiscal year)? so the PE would be price/(eps x4)?

    Thks frm noob

    ReplyDelete
  2. Yes, the EPS is for the whole year.
    Polite Market

    ReplyDelete
  3. hi, do i need to forecast the price as well or remain constant for next 2 years(assumed).

    Thanks from me

    ReplyDelete
    Replies
    1. Remain constant, that is what most analysts do.

      Delete

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