- Dan Wilson MemberJuly 12, 2019 at 8:34 amPost count: 15
I’m new to the forum and investing.
I live in England and I’m currently going through the FTSE 250 to see if I can find any companies that may be undervalued.
I have just come across Bellway PLC (ticker = BWY) and have the following two questions:
At first glance this looked like a good company to invest in as the P/E*P/BV was only 7.94, the debt/equity is 0, the current ratio is 4.21 and the BV, EPS & dividends have been steadily increasing over the past 10 years.
Happy with this I went to the intrinsic value calculator and typed in the numbers which gave me a intrinsic value of approx. £48 per share.
The question I have is why is the market price of £2,840.00 per share?
I changed the interest rate to get the intrinsic value of the calculator to match the current market price and the interest rate was -33.75%. Does this mean if I was to invest in this business now I would make a 33.75% loss per year?
Thank you in advance.
Dan.Ross NewbieJuly 13, 2019 at 6:21 amPost count: 3
Market prices in the UK are quoted in pence. This differs from the US. The stock price is currently £28.25.
The stock looks cheap based on purely the valuation. The balance sheet is strong. What do you believe will keep the business earning high returns on capital?
Am I Doing Something Wrong?Dan Wilson2019-07-12T08:34:54-04:00
Viewing 5 posts - 1 through 5 (of 5 total)