Re: BEAS PE
Look, it is quite a simple a problem to solve. Simply add up the trailing 4 quarters earnings and divide that into the stock price. And they are as follows $.05, $.07, $.10, $.08 = $.30 $20/.30 = $66, and today's price $22.5/.30 = $75, or more in-line with Zachs.
I don't believe it is quite so simple a problem to solve. In my opinion, we need a standard way to calculate a PE. Until recently, the "E" in PE was based on earnings determined by generally accepted accounting principles. I can only surmise that your PE must be based on pro forma earnings (although I have not verified this). So your PE, imho, is at best a "pro forma PE". With the recent widespread abuse of pro forma earnings reporting privileges, I believe any PE derived from from pro forma earnings should be identified as such. Hopefully this will lead a prospective investor to fully examine the assumptions that went in to the pro forma earnings numbers.
The trailing quarterly diluted net income per share as reported in the BEAS SEC filings are .05, .04, .02 and .01 which add up to twelve cents per share. $22.50/.12 = 187 PE for BEAS. Guess I have to agree to with JHP on the PE issue, but I appreciate your more extensive valuation analysis with regard to free cash flow and ROIC. I bookmarked that valuation post for study later.
Best, Huey |
