Great to read your discussions on this.
----- Original Message -----
Sent: Monday, February 05, 2001 2:22
PM
Subject: Re: Re: Re: Re: [sharechat]
Interesting Article on P/E ratios..applied to THL
Peter,
Thanks. No, I am not "trying you out"!
I was reading Ben Dutton's reference to " One
sure way to avoid value traps ".( Thank you Ben! ).
As you know, it referred to "equity plus debt"
and I took it to mean:" Net equity + debt ".
And that in turn convinced me to deduct intang.
from the market cap.!
However, adding the "long term liab". to the
quoted " Total equity", ( per share ) will get me close to
to your $ 3.09 !
Suggest we now use in addition to the
current P/E , (a) symbol(s) to denote the P/E based on "the
enterprise value": Say P/E(
v ) or P/E
(ev).
Some may perhaps think that it could be
confusing or would rather prefer to use the words "enterprise value"
instead. I prefer a 'short' version. The concept would be frequently
used, I think.
Perhaps, Ben Dutton may want to organize this or define it; he brought the article to our
notice in the first place!
THL received $ 12.8 mill. from the previous Britz
people and their interim announcement was Feb. 29, last year.
Cheers,
Gerry
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