Concordia Healthcare Corp. T.CXR.R

PEG Ratio

[BPeteA24]

Anyone done the math on CXR's PEG based on 2016 earnings projections and forward looking normalized growth forecasts?

[sunshine7]

Good question which I am not qualified to answer. Suggest that a couple of growth scenarios should be modelled because there is the 'preliminary' guidance which I have always suspected of being lowballed and the likely numbers which they have a better idea now as evidenced by MT comments the other eve.

[sunshine7]

P/E ratio Annual EPS Growth ... anyone care to do the math?

[sunshine7]

Sorry, should read P/E ratio divided by Annual EPS Growth ... P/E using guidance is currently 4.3. Using growth of 15% give PEG of 0.29. Anything below 1.0 is considered undervalued. At 10% growth this rises to 0.43. I expect CXR to exceed and revise guidance upward which may make these numbers seem low or SP rises by 40% in response, still making CXR good value 'in a normally functioning

[adamchess]

Based on todays price of $41 and $6 earnings and 10 % growth - PEG is 41/6 divided by 10% = 0.68  Bargain basement and concervative growth number.

[sunshine7]

You are using CD share price and USD earnings...

[adamchess]

Yes, sorry. Somehow I used $41 instead of $29 I intended to use. My bad.  41/6 divided by 10% = 0.48 PEG

[adamchess]

I give up. Once more: 29/6 divided by 10% = 0.483 PEG 

[sunshine7]

[fdfd12]

Earnings of $6.50US makes over $9 CAN. Price of $41CAN makes it a 4.5 times earnings. Ridiculously cheap. Stockcoach has said, the market doesn't always trade correctly and often trades irrationally. I have seen that, but have never seen it stay irrational for this long. Since the end of September makes it 5 months. Usually it would pop up after 1 month. Really not a good sign. Let us see

[adamchess]

I think the growth number is hard to quantify here. They talk about high single digit, but I think it is only the price increases? They still have growth from new products, expanding territories, cross-selling AMCo to US , etc. I think they are easy in double-digit growth as a result. The actual number is anyones guess. How about 15%?

[sunshine7]

I think 15% is a good guess. Calculating at 10, 15 and 20% may provide a safe range to use. To be clear to those without history, actual growth 2016 over 2015 is 100%+ by all measures.