Here's a simple analysis to determine if the stock shares you intend to buy is undervalued or overpriced. First find out its Quaterly earning per share (Q eps). Then multiply by 4 to estimate its annualised/yearly earnings. Then multiply by PE ratio 10. (PE Ratio simply means the price I paid for its share today, the company should in 10 years time match it with all its accumulated earnings, theorectically).
So simple Fair Value or Price = Q eps x 4 x 10.
Boustead (latest Q eps 16.2 sen, nta RM4.20). Fair Value Fv = 16 x 4 x 10 = RM6.40
At RM3.40 ( ex. 16/3, 6 sen t.e. + 4 sen taxable), it's very attractively priced at abt 55% of its fair value. The only issue is whether the Q eps is sustainable in the following quaters.
TDM (latest Q eps 9.7 sen, nta RM2.88 ). Fv = 9.7 x 4 x 10 = RM3.88
At RM1.70, it's attractively priced at 46% of its Fv. Still holding on to mine as I expect it to declare 14 sen dividend (approx. 8 %) in June.
Will post HS Plant, TH Plant, IJM Plant, Unico, Kim Loong, TSH later or 2moro...