Member Info for Peoplepower1

What is EPS multiplied by PE?

Determining Market Value Using P/E

Multiply the stock's P/E ratio by its EPS to calculate its actual market value. for example, multiply EPS 5.78 by P/E 21.2 to get a market price of 122.5p

For year ending 2023 the estimated EPS normalised is 715 wit a P/E of 17.2

7.15 x 17.2 is still 123p so the share price valuation using EPS x P/E for end of 2023 is still 123p

Some people use EPS x P/E to estimate the share price, maybe not you, however, some do.

The EPS of 5.78 is the present Boohoo EPS normalised taken from Stockopedia as is the P/E of 21.2

The estimated Boohoo EPS normalised is 5.85 for year end 2022 with an estimated P/E of 21 for year end 2022. 5.85 x 21 is near enough 123p, not much difference.

Some use a very simple method to estimate a share price. And, this is the EPS multiplied by the P/E.

EPS at present for Boohoo is 5.78, multiplied by the present Boohoo P/E of 21.2 which makes it 122.5p

Retailers do not usually break out return rates or related
expenses, but signs are emerging that the wave of returns
started much before Christmas this year as consumers started
shopping sooner, leading to higher costs because of the longer
grace period, according to some retailers.

Over the past six weeks, privately owned office supplies
retailer Staples has seen a 30% increase in drop-offs and
returns, said Craig Grayson, vice president of general
merchandise management.

UK-based online fashion retailer Boohoo BOOH.L said UK
return rates its quarter ending Nov. 30 were already 12.5
percentage points higher than the same period last year and 7
percentage points higher than pre-pandemic levels. Those higher
rates and related logistic costs led it to cut its annual
margins forecast twice in the past four months. urn:newsml:reuters.com:*:nL8N2T11HD.

'LIVING IN A RATS' NEST'

Consider a sweater priced at $100. Most retailers' margin on
the sweater could be $33 if a shopper purchased it in-store, but
only $17 if bought online and shipped to the customer's home
from a store, according to an AlixPartners report from May 2020.

If a customer returns the sweater to the store and it is not
resold, the retailer loses $25 in margin. The lost margin spikes
to $31 if it had to collect the online purchase and return it
from a customer's home to a distribution center, according to
the report that reviewed returns policies of retailers including
Walmart, Amazon.com AMZN.O , Macy's, Aldi and Kroger KR.N .

And with online shopping growing, retailers have boosted
orders to account for items not available because they are in
transit or sitting unsold in stores, Rosenblum said. But further
exacerbating the problem is the risk of all that excess
inventory also going unsold.
"We are living in a rats' nest at the moment, and it’s
really hard to untangle what’s going to happen," she said.

Apple CEO Tim Cook told Reuters the impact of supply-chain
disruptions would be worse this holiday season as persistent
shortages of software chips were affecting "most of its
products," leading the iPhone maker to fall short of demand by
more than $6 billion. urn:newsml:reuters.com:*:nL1N2RO3A2

Apple introduced a policy this year allowing customers up to
68 days to return a product, instead of 30 days.

Similarly, Nordstrom Inc's JWN.N Nordstrom Rack has
extended its return policies on many products to 45 days, Nike
to 60 days and Macy's, Walmart and Saks Fifth Avenue to as much
as 90 days.

Dec 29 - Major U.S. retailers' longer return
policies, launched during the pandemic this year to lure
consumers, could leave them facing much higher costs if shoppers
bring back a record-setting $112 billion in gifts bought during
the extended holiday shopping season.

Retailers entered the 2021 holiday season facing a
supply-chain logjam, with inventories https://fred.stlouisfed.org/series/RETAILIRSA
at lows unseen since 1992.

Many began Christmas promotions as early as September, to
spread out the impact caused by shipping- and labor-related
shortages over more months than the traditional peak shopping
days between Thanksgiving and Christmas.

Retailers also lured shoppers with "extended" return
policies. Apple Inc AAPL.O , Saks Fifth Avenue 12720001.CSX
and Nike NKE.N are among chains allowing shoppers to return
holiday purchases after 60 or 90 days, rather than the industry
standard of 30 days.

But this extended return process, which can include shipping
costs, cleaning fees and repackaging, can drive higher costs for
retailers and weigh heavily on profit margins.

With global supply-chain snarls not expected to ease until
at least 2023, the "returns" problem is not expected to go away
soon. urn:newsml:reuters.com:*:nL1N2RH0LQ
"The returns problem is likely to be a big focus area in the
coming two years, since the costs associated with the activity
are bound to impact earnings ... significantly," RSR Research
analyst Brian Kilcourse said in an email.

U.S. shoppers are expected to return a record $112 billion
to $114 billion worth of merchandise in coming weeks,
representing a 24% to 27% increase over 2019 post-holiday
returns, according to B-Stock Solutions, which manages online
liquidation sites for retailers including Walmart Inc WMT.N ,
Costco Wholesale Corp COST.O and Best Buy Co Inc BBY.N .

Of that, between $43 billion and $45 billion in returns are
likely to be merchandise purchased online, B-Stock said.

According to the National Retail Federation https://nrf.com/media-center/press-releases/428-billion-merchandise-returned-2020,
a trade group, consumers returned an estimated 10.6% of goods
purchased at U.S. retail in 2020. That percentage is estimated
to have risen 13.3% during the holiday season, costing retailers
$101 billion.

Optoro, which works with retailers and manufacturers to
manage and resell returned merchandise, said it expects shoppers
to return $120 billion in goods between Thanksgiving and Jan.
31.

While longer return windows may not directly add to
retailers' expenses, it does impact their ability to use working
capital for other things, said Paula Rosenblum, managing partner
at retail research firm RSR Research. "It's an unknown payable."

Maybe Norges Bank won't add any more until the fundraising. They must have realised by now that Boohoo Group will have to do a fundraising to survive, to grow its operations and to get a warehouse in the USA.

And how much will the Boohoo Group have to raise to survive, to grow its operations and to get a warehouse in the USA?

My thinking is at the least £200m.

The last fundraising was in May 2020 for £200m at £3.40 a share.

This fundraising will have to be for £200m at £1 a share with any luck.

So, how much will the shares have to be placed for the fundraising?

I'm hoping they won't be placed at less than a £1. Who knows???

Thankfully, I'm learning to take my rose coloured spectacles off when it comes to the Boohoo Group ....

And so say all the rampers again ........

They have to do anything to discredit me. I did the same when I was ramping because I believed in Boohoo. I learnt the hard way. I'm still learning. Now I take apart every trading update.

And so say all the rampers ........

Operating cash flow (OCF) is a measure of the amount of cash generated by a company's normal business operations.

Operating cash flow indicates whether a company can generate sufficient positive cash flow to maintain and grow its operations, otherwise, it may require external financing for capital expansion.

From investopedia - read and learn.

Boohoo Group needs a fundraising to survieve, to grow its operations and to get a warehouse in the USA.

No, investopedia.

Operating cash flow includes all cash generated by a company's main business activities.

Look at the figures on the trading update for 14 January 2021 and compare them to the figures on the trading update for 16 December 2021. Then you'll see that operating cash flow has gone down dramatically from the trading update on 14 january 2021 to the trading update on 16 December 2021 which means sales have gone down dramatically.

I bought 360,000 Boohoo share at 27p in 2015. I was like all the rampers on here thinking Boohoo were great and would go up and up.

I've learnt the hard way, so now I scour everything and make sure I understand the figures as much as possible.

I was like many on here rubbishing the posters against Boohoo when I should have been paying attention to the negative posters.

Greed makes you think you're invincible. I've been there, got the t shirt and look what it's done to me.

A fundraising is the only way for the Boohoo Group to survive and to get a warehouse in the USA.

The Boohoo Group can't afford to take on debt because they don't have the money to repay it. Their sales are going down and so their working capital is going down which means taking on debt is a no no.

WolfofWarks - There has been a big investment in stock by the Boohoo Group according to you. So what happens if this big investment in stock hasn't sold???

Working capital has gone down if you look at the figures from the trading update on 14 January 2021 to the trading update on 16 December 2021 so sales have gone down from 14 January 2021 to 16 December 2021.

Please note the next trading update for Boohoo is early March 2022.