anurabw wrote:Dialog EPS in 1st quoter 0.17
So EPS =0.17*4= 0.68
PER in TLE = 32.7
Then share price = 0.68*32.7 =22.2
But it is 9.7?
You would be well advised to read the forum's past topics. YOu would learn that
1) you should not annualize EPS by multiplying last quarter by 4 (ask the chicken farmers for details)
2) you can't multiply apples by oranges. (32.7 is trailing PER for the sector, the 0.68 is your forcast EPS, they are apples and oranges).
3) THere are only 2 companies in the telecom sector so using sector PE in any calculation is a bit rediculous to say the least.
4) why would anyone want to buy a share trading at PE 32 when there are plenty of good shares available for picking at PE < 10 ?