PE, page-3

"Having said that from my rudimentary calculation of Boral's current PE
5.10 / EPS of 0.33 its still 15.45 PE.
That is in my view of a collapsing market and building weakness still pretty high. I know each industry is a little different but generally PE's above 14 are recognised as high.
The PE of Boral should be like 12 at this point surely."


I agree with you: I wouldn't pay 15x P/E for a business that is as cyclical and capital-intensive as this business.

However, I'm not sure you are calculating the P/E correctly, in your use of EPS of $0.33

Last year they reported EPS (pre-NRIs [*]) of 40cps and the AGM guidance was for 20% EBITDA growth in FY2019, so I suspect they will record underlying EPS close to 45cps in FY2019

That leaves the P/E at the current share price close to 11.5x... which is a a lot different to 15.5x


[*] Refer Note 7 of FY2018 accounts for reconciliation of NRI's