Originally Posted by
winner69
Heartland PE ratio - for what it's worth
All numbers based on monthly share price closes and the PEs are the forward looking ones
Between Jan 2013 and Feb 2020 Heartland's PE has ranged between 10.0 and 17.0. Note this excludes post Covid where PE dropped to 7.4.
In the same period Heartland's PE has averaged 12.6 (again excluded post Covid for normality but if included the average would be 12.2)
Always better to use averages than 'midpoints' (which in this case are nowhere near the median)
While Heartland's PE does tend to follow Aussie banks it is generally lower. Why - as Forbar said the other day (and other professional analysts would think the same) this is because of HGH's high risk profile in comparison to international banking peers and HGH's sub scale profile (makes up 1% of banking assets in NZ),
As a matter of interest HGH's PE at $1.81 today is 12.4 and is the same as it was in Feb last year pre Covid ....and not too far away from its average. Maybe current share price is about right on this basis.
Looking forward future shareprice no doubt will be driven by eps growth and in this respect bear in mind that this is less than earnings growth (because of new shares)