Pan-United Corp. has three main businesses - (1) basic building resources, (2) shipping, (3) port & logistics. Basic Building Resources (BBR) division, which I will loosely categorise it as cement and ready mixed concrete (RMC) business, is the biggest revenue and bottom line contributor. Pan-United's last close price is 92 cents, which is a 16% drop from $1.10 registered in June earlier this year.
Page 9 of 1HFY14 results announcement (Pan-United)
From 1H FY14 results announcement, 1H earnings are 3.6 cents per share. Simple extrapolation of this gives us an estimated 7.2 cents per share. This in turn gives us a price-earnings (P/E) ratio of 12.8 times (92 / 7.2).I prefer to buy stocks when the P/E ratio is less than 10 times, but there is little basis for the figure. It is perhaps more revealing ...
