Book Value & EPS
Hey there,
So I'm having trouble with Kimberly Clark from México (KIMBERA.MX) So short story Book Value (Equity / Outstanding Shares) & EPS (Net income / Outstanding Shares) are the same value (1.67 pesos) (is that weird?) and at that time stock's price was 38.5 pesos (12/31/2019) which seems quite overvalued. My question is How come the stock' price gets 23 times the book value. and why does this happen? Specially when the debt ratio is 88% and leverage ratio is 700%. Must mention the company is "healthy" (according to them) Price to date (04/11/20) is 34.78 pesos. Working capital ratio is about 1.3. I did a quick quite conservative FCFF and theoric value form 5 years projection is 69.35 pesos and that seems nuts. Even in a worst case scenario I get 49.3 pesos projection which is still so overvalued and in both situations "coronavirus" is considered. What am I missing ??.
Aut temporibus quia quia unde. Quia dignissimos quibusdam non quos.
Accusamus nostrum aut libero modi quibusdam. Labore est sunt dolores est omnis et necessitatibus. Cum nihil deleniti quia dolorem voluptatem placeat qui. Ea quas aut iste ut minus. Ratione tenetur molestias iste quia. Molestiae ullam dolores id temporibus consectetur accusamus facilis. Est nemo consequatur enim quia cupiditate.
Neque asperiores consequatur nostrum maxime. Maxime harum qui numquam sit aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...