Tuesday, February 15, 2011

DTEX3 - Duratex

Duratex has just released its earnings for 2010.
Still very difficult to analyse, since in 2008 DTEX acquired Satipel.
But a simple calculation shows that the medium ROE for DTEX in 2005 to 2008 (before the fusion) is 16,6% (not considering the best 3 quarters). Applying this rate to the current net worth gives an earnings of 430 million.
If we allow an increase in margin because of the scale gain and consider then a normal earnings of 500 million, DTEX would be trading with a P/E of 15.
I think it's to much, because its sector is today booming!

Under no circumstances does any article or opinion posted on this blog represents any kind of advice, suggestion or recommendation to buy or sell any security. We also do not guarantee the accuracy of any information contained in any posting on this blog.

Related Posts

0 comments:

Post a Comment

We encourage your feedback and we will take your comments into serious consideration. However, you must be warned that any comment that does not follow the blog philosophy (Value Investing and Behavioural Finance) will be promptly removed.