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To maintain the stock price of $51, analysts expected 3COMS to make $.36 eps in the previous quarter, which will make the total earning of the last quarter to e $$1.16, and a PE of 44. So, PE of 44 for 3COMS is widely agreed by analysts. The fact is , the real earning of previous quarter is $.24, and this will make the total earning of the previous 4 quarters to be $1.01, so multiply the agreed PE by analysts, which is 44, by the real earning of the past four quarters, which was $1.01, the justified price of 3COMS should be $44 1/2. 3COMS is well under valued. If we use the forward earning method, we expect 3COMS to make $.24 * 4 of total in the previous two and next two quarters, then with PE of 44, the stock price should be $42 1/4, and this also show that 3COMS is well under valued. The stock has a lot of up pressure from here !!!! |
