MCE 3.85% 25.0¢ matrix composites & engineering limited

Minor correction (PR 16%)My valuation of MCE (using RM's...

  1. 166 Posts.
    Minor correction (PR 16%)
    My valuation of MCE (using RM's valuation method)

    Equity 31 Dec 2009 - 41.1m
    Equity 31 Dec 2010 - 84.5m
    Average equity 62.8m
    NPAT 30.1m (2010 calender year)
    ROE 48%
    Equity/share $1.21
    Dividend payout ratio 16%
    RR 13%
    IV
    1.21x3.69x0.16=0.71
    1.21x10.50x0.84=10.67
    0.41+11.27= $11.38

    Big jump in IV as a result of much lower than expected payout ratio.
 
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