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Re: Re: Re: [sharechat] Interesting Article on P/E ratios..applied to THL

From:	"Douglas Stewart" <dougstew@ihug.co.nz>
Date:	Thu, 25 Jan 2001 09:18:57 +1300

Sorry - made a couple of mistakes in the previous post - mixed up eps values and gross earnings values - the perils of getting up early and working too late.

Using "Buffett" 15% hurdle rate values THL at $1.96 per share.

Using "risk free" 6.5% hurdle rate values THL at $4.67 per share.

I should also add that despite invoking Buffett's 15% hurdle rate, THL would not meet his other investment criteria. (My own opinion is that no NZSE shares would.)

On the other hand, the fact that at current prices THL can leap a 15%pa return hurdle rate does indicate that it is currently undervalued by the market.

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