Member Info for Peoplepower1

With an estimated EPS for year ending 28 February 2021 of 8.56 x 1.3 x 10 makes the estimated eps in 10 years as 111p

Earnings per share of 111p x the future PE of 52.7 gives a share value in 10 years, i.e. 2031, of £58.50

With an estimated EPS for year ending 28 February 2022 of 10.83 x 1.3 x 10 makes the estimated eps in 10 years from 2022 as near enough 141p

Earnings per share of 141p x the future PE of 52.7 gives a share value in 10 years, i.e. 2032, of £74.30

dimi123 - here's another valuation calculation used by another poster on here called BuffettsloveChild back in about December 2020:-

Intrinsic Value of Boohoo

The calculation method used is as follows;

1) Work out the expected future earnings per share (EPS) growth rate of the company

This is based on either the analyst's evaluations on say, yahoo finance for 5yr growth, or on previous year's performance based on equity growth, whichever number is the most conservative.

2) Work out the future Price to Earnings ratio (PE)

This is taken as either the average of previous 5yr high and 5yr low. Or double the growth rate, whichever number is most conservative.

3) Estimate what the Earnings per Share will be in 10yrs time.

Take current earnings per share and multiply by the EPS growth rate and number of years (say, 10). This will give the estimated EPS in 10 yrs.

4) Calculate the share value in 10yrs time

This is basically the estimated future Earnings per share x the estimated future PE value.

5) Discount to find todays Fair value for the share.

Discount this estimated share value back to the current day but take your required annual profits required out each year. (say, at 15%)

6 Reduce the sum to have a margin of safety, 50% is acceptable.

This is because we know that everything may not go as planned. This is basically the maximum we are willing to pay per share as a new owner of the company.

Estimate of the Intrinsic value price of a Boohoo Share.

1) 5 year EPS growth rate estimate from yahoo finance (analysis page) is 29.9% per year. From the balance sheet we can see that equity has grown from 85.5million in 2015 to 569 million in 2020. That is 46% per year compounded growth.

2) The 5yr historic PE from MSN Money price ratios is High of 70.86 and low of 37.69 is 52.7 average.

3) Current EPS (TTM) is 5.3p x growth rate 1.3 x 10 yrs = 69. Therefore the estimated EPS is 69p in 10yrs.

4) The earnings per share of 0.69 x the future PE of 52.7 gives a share value in 10 yrs of £35.88.

5) If you take 15% profits year on year from this sum you achieve a current fair price of £7.71

6) discount this by 50% for a margin of safety purchase price of £3.85. Basically you can buy this all the way up to £3.85 and still get a fantastic bargain.

Hope this is of use to you.

dimi123 - just checked out Simply Wall Street again. Looks like they're getting better.

dimi123 - I subscribe to Stockopedia.

Stockopedia have the average analysts forecasts price at 463.16p with an estimated long term growth rate of 32.9%.

Net profit for year ending 28 February 2021 is estimated at £107.33m with an estimated earnings per share (eps) of 8.56.

Net profit for year ending 28 February 2022 is estimated at £136.87m with an estimated eps of 10.83

dimi123 - I think Simply Wall Street take an average price of all the analysts target prices. I subscribed to Simply Wall Street and wasn't impressed.

How did you work out your fair price of £6.50 for Boohoo?

According to the latest report by Sir Brian Leveson — the retired judge who has been appointed by Boohoo to oversee the overhaul of its supply chain — approved suppliers must recruit their staff on contracts varying from 24 to 48 hours a week; pay “no less than minimum wage” as well as overtime, and include pension contributions, holiday entitlement and sick leave in their contracts.

“The intervention of a more intrusive audit has dramatically changed the way industry is run in Leicester and created a level playing field upon which to compete and grow,” added Leveson.

Boohoo said the changes to its supply chain have been implemented by a “significantly strengthened” in-house compliance team and independent auditors, who examined suppliers twice in the last eight months, including during evenings and weekends.

Regular audits will continue, the company said.

“This is not the end of the project for us, but the beginning of a new way of working with our suppliers. We have faced up to the problems of the past, and want to play our part in rebuilding a vibrant manufacturing base in Leicester,” said Boohoo’s chief executive officer John Lyttle.

https://wwd.com/business-news/retail/boohoo-cuts-ties-with-hundreds-of-u-k-manufacturers-bans-sub-contracting-1234787147/

Response from analysts was positive, with Jefferies predicting further rise in the share price as a result of the publication of the report.

“We see today’s publication of a fully audited U.K. supplier list as an important step in reestablishing trust in the business and momentum in the shares. We look for investor focus to begin to turn back to trading and valuation fundamentals,” Jefferies said in a statement.

Anessa Sherman, senior analyst at Bernstein, added: “We view this as another step toward regaining investor trust and shedding the ESG overhang on the stock.”

Thank you Slipperz. Have a fun weekend.

Are the stalkers still there?

Thankfully, I don't have to put up with the stalkers anymore.

Life's too precious to let anyone get at you.

Your time's too valuable to waste on people who want only to get at you.

Sad people.

Brilliant, I have so many green filters now.

It makes life much better not having to read the hatred, jealousy and vindictiveness on here.

Peace at its best.

Thank you God.

Try it.

It's worth every ounce of calmness.

Karma.

When will we learn to control them?

These three traits cause all sorts of atrocities, so we all must try to learn to control them otherwise we perish.

At their worst in the Bosnian war these three traits caused neighbours who had been friends and neighbours for years and years to turn on each other, to rape and kill each other. This is what harbouring such traits do to human beings.

We all need to learn what human beings can do to each other when they harbour hatred, jealousy and vindictiveness.

We seek to destroy others with these three traits.

Be aware.

Be always aware of what we as human beings are capable of doing with these three traits.

Windbag Wyndrum who has been investing for 40 years and never made a million.

You're in perfect company Ancientofdays. You're made for each other, you two.

Two old nasty men together who have never made a million in their investments. I wonder why. Maybe the karma doesn't work for you.

Getting sanctimonious wrong is about being too fast on my keyboard. I doubt if you'd know anything about this.

Two vindictive old men.

I filtered Wyndrum yonks ago. Time to filter Ancientofdays too.

That sounds like a back handed apology to me if ever there was one.

Considering you only joined here a month ago, you have 17 posts.

I have £1.2m invested in Boohoo.

I invested £100,000 in 2015, held through every up and down. This has grown to £1.2m. I'm looking forward to it growing to £100m in 20 years time. This will be spread far and wide. It is karma which has helped me reap such great rewards and karma which will help me to share it with my extended family, friends, neighbours and strangers.

So you're patronising too as well as sanctimonious.

Aggressive posts, try reading your own 17 condescending posts.

Try helping your extended family, friends, neighbours and strangers. It may teach you to be less condescending, patronising and arrogant to others.

Seek to be less condescending, less patronising and less sanctimonious in your future posts. That may bring you much more peace because you sound too arrogant to have found peace to me.

It is greed that destroys us.

History shows us that only too well.

Spread your bread upon the water and it will come back to you 10 times.

I'm a big believer in helping others, family, friends, neighbours, strangers with whatever I can, be it money, time, knowledge, skills or experience.

This is how you get richer slowly in all ways and not just monetary.

L_Hopkins - please don't make assumptions about me.

Spare me from snactimonious one nation conservativisim which in reality means one nation greed and to hell with everyone else.

Ancientof days - another a**ehole who loves the sound of his own voice and comments too.

There is too much divide and conquer being used by newspapers, Governments, etc., to polarise us.

We need to learn to rise above being used by such motives.

There is good and bad in left, right and centre politics. None of them are perfect.