overvalued?20 Nov 2006 14:47
I've just looked at the RNS's on IBB. In September 7th it was announced that the net income was 1.2m, the loss was 4.2m (increasing from 3.7m in the same period last year), and that the market cap at an sp of 14p was £59m. (that means there are 421,428,571 shares)
I'm new to analysis - so please correct me if the following is wrong...
The sp is now about 24 (at time of writing).
This means the market cap is now £101m.
With 4 branches their net income was £37m, so with 7 branches, maybe we can assume their net income is £65m (or £64.75m).
so what is the current earnings per share? - 1,200,000 / 421,428,571 = £0.002847...
making a p/e of 84.28 (0.24/0.002847)
so for it to have a p/e of say 20 it would have to have 4-5 times as many branches? or massively improve the earnings per branch?
Does this p/e worry you guys?