Annualized forward EPS ((1.13+1.33)x90%x2)= 4.4/2=2.2
Last Traded Price= 47.90
Current P/E= 47.9/2.2=21.5
Sector P/E=17.7
NAV(using 2010/12/31 value )= 20.77/2=10.35
60% of sector P/E=17.7*.6=10.62
Do you think the share is over valued at its current market price when compared to the 60% of sector P/E.60% was used to have some sort of safety margin.
When compared with PE with NAV, it seems to have some potential for price to go down, is this logic is correct?
Also the quality of EPS is good as the per share operating cash flow on 2010/12/31 is around Rs 12.5.
* Assumed the effect of share sub division is fairly represented by the current price.