Cerebos Pacific is currently testing the 2 years uptrend support. Current PE of 10.8 (base on current price $4.98) is not over value compare to the sector average of about 15 and PE of previous years.
- PE (FY2010) = 15.28
- PE (FY2009) = 19.01
- PE (FY2008) = 19.43
Fundamental Analysis (base on FY2010):
- EPS = $0.4607 (increasing for the past 3 years)
- Net Operating Cash Flow = S$198.2 Million (increasing for the past 3 years)
- Net Profit Margin: 12.2% (increasing for the past 3 years)
- ROA = 19.2% (increasing for the past 3 years)
- ROE = 33.3% (increasing for the past 3 years)
- Current Ratio = 1.7
- Debt to Equity Ratio = 0.28
Keep a close eye of the uptrend support and 200D MA support. Maybe good to accumulate for long term investment when the correction comes.
My opinion of Cerebos Pacific is; it is slightly under-value with a PE Ratio of 13.644 wrt EPS(TTM) of $0.365 & Price at $5.00 as at 27 June 2011 closing. The average PE ratio of the last 5 years (Qtr-to-Qtr) is 14.942.
Going by the average PE Ratio & EPS, the fair value could be at $5.4538. Looking at the current price movement, it seem still have the momentum to move further up.