smallville wrote:greedy wrote:
(This one of gain has been ignored by the research person)
Was it accounted in for most of the IPO research docs from broker up to now?
'tis purposely done to bring a valuation attractive IMO...
Finally this is also a mess..
I don't read much IPO research documents from broker firms but glanced through this one. The best practice is to take off one off gains and "Normalise" earnings in calculating P/E ratios. As per the research document, P/E ratio is 20.37 based on 2011 earnings. However, if we eliminate this irregular gain, P/E ratio would be 29 times.
refer page number 109 in the prospectus (4th line item in the income statement).