Use PEG Ratio as Best Gauge to show How UndervaluedI. Full year 2017 earnings per share = $ 0.64
So far Q1 2018 = $ 0.24
Q2 2018 = $ 0.29
Q3 2018 = $ 0.31 (estimate)
Q4 2018 = $ 0.33 (estimate)
= $ 1.17 for 2018
So far YTD 2018 earnings of $ 0.53 after 6 months...crazy good.
Add the 2 estimates for Q3 2018 and Q4 2018
= $ 1.17/share projected for FULL YEAR 2018
II. YoY earnings growth = 82.81 % let's estimate from last year
Current PE Ratio after today's Oct 11th close of $ 27.34 CAD = approx. 21-22, take midpoint of 21.5 as PE
PEG ratio therefore = 21.5/82.81
PEG ratio = 0.2596
This is way way below a PEG typical ratio of 1 (anything below 1 is ideal when using PEG ratio) which shows the power of Kirkland's Earnings growth. This is 75 % below ratio of 1. This is a growth story.
Even at $ 35 CAD share price, given full year 2018 earnings of $ 1.17 (once again an estimate), PE ratio would still be below 30!
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