afr street talk: citi upgrades nhc to a buy, page-12

Not right to use PE's for Resources stocks - no terminal value and the "E" is a polluted number.
Better to use EV/EBITDA and look at the number 1 to 2 years forward.
NHC FY2 EV/EBITDA 6.74
CNA FY2 EV/EBITDA 5.92
WHC FY2 EV/EBITDA 5.91

Appears to be more expensive but must remember its high EPS growth.
Had a huge re-rate against the 300 Resources sector which is now almost at a relative range high. i.e Its out performance relative to the sector may well be close to finishing for now.

EPS upgrades can give the stock another leg.