So sorry for asking a basic question....how/where to get info on the EPS???

You can either go to http://biz.thestar.com.my or Company Announcements in www.klse.com.my

Hey Sifu,

Normally when people mentioned Growth rate, how to we calculate it ? is it based on revenue ?

Many Thanks DanielW !!

Revenue or sales growth rate is not so important compared to EPS, dividends and cash flow growth rate. This is because sales growth can be good but bad cost management can cause profit growth to be poor.

EPS growth rate = (Current year EPS - Previous year EPS)/Previous EPS x 100

For comparison between companies of the same industry, I would prefer to take "average annual compounded growth rate" taken in a period of 5 or 10 years instead of just 1 year. This is to overcome the problem of cyclical fluctuations in earnings.

The formula for "average annual compounded growth rate" can be found in my previous post #1291 here: http://forum.lowyat.net/topic/609001/+1280
Formula similar with the one for Operating Cash Flow growth rate.

This post has been edited by DanielW: Jan 23 2010, 05:05 PM

Dear All,

PE ratio = Current Price/EPS.

My question is, is the Par value changes the PE ratio or EPS?

Example for KPJ:
Current Price = 2.30 (After split 1:2)
EPs around 40

So, PE ratio for KPJ = 2.3/ 0.40 = 5.75 ??
or We need to factor in the Par value as well as PE = 5.75 is not logical.

EPS has to be adjust in line with dilution.

PER 2.3/0.40 = 5.75 is correct.
Provided your EPS also split half.

Thanks to htt and rayloo. I'm clear now. Meaning if the Par value split to 1:2, then the EPS has to split to 1:2 as well.

Hi, I am a newbie here.
To all the sifu here, just wonder where can I get the past 10 years PE ratio?
I can't find it through their website, is there anyway to obtain it?

It serve no purpose at all to get the past 10 years PE ratio

I refered from a book for calculation of intrinsic value and the fair value.
Probably, sifu here can teach me how to get these 2 values?

PE = Market Price (PV) / Earning Per Share (EPS)
PV change almost daily, very hard to have consistent comparison, also influence by economy trend...
Also EPS not equal to cash earned etc etc...
Unless the calculation is really sophiscated, else I don't think that's accurate... or even near to it...

I don't think need to do for newbie. Just fyi, average PE ratio for market and reasonable PE ratio is around teen number. While it depends on economy trend and interest rate as well.

Every company situation is different to each others, it is impossible to apply a set of calculation to judge all the company.

Fair value is about a valuation that one willing to pay on the share price to get a reasonable return than others investment vehicle while exposed to the risk of it.

Don't be too rigid on those value, it is merely one of the guide.

from business times, should show improvement for palm oil counter

I did refer to previous PER to guide the price that I should pay for a stock. Wish my jungle method helps, by using the average price for each year to calculate the average PER for that year. After collecting like 10 years of infor you may come out an idea to tell about the value of current price. Please note that this method serves only part of the guidelines before investing in any stocks.

Try at your own risks.

This post has been edited by rayloo: Jan 25 2010, 03:34 PM

Why not you teach us how you learnt from the book ?

Is there an average PE ration for each year?

Ic. Probably i thought that after getting fair value, we can justify that whether the stock is underperform or expensive to in.

The author is Ho Kok Mun, malaysian trader. According to the formula in his book, he average 10 years past EPS value to justify future EPS. let's say average EPS over past 10 years is 16%. Then he will use 1.16 x eps of current year to gt next yr eps.

My jungle method also quite same with his. Best Guess rules.

Mind to share?