Fortunately, I've had some feedback which pointed out that my Return on Equity figures did not match the Earnings Per Share and Equity figures in the table. Therefore, I'm now taking the opportunity to update the data. The information in the last post still stands and the conclusions reached do not require change. The reason for this is that the valuations were based on the Return on Equity data and not the Earnings Per Share data. The Earnings Per Share figures have been revised downwards in line with the Return on Equity.
My plan moving forward is to track and post the results as this index changes. This will be done when there is any significant changes in the values.
I also intend to add further information to the analysis such as tracking the changes of earnings forecasts.
This is an ongoing project so will involve slight adjustments from time to time to ensure that the information is as accurate as possible.
Current ASX200 (XJO): 4,500
Potential target: 5,348
And the results with flat profitability:
Current ASX200 (XJO): 4,500
Potential target: 4,631
ASX20 chart looks great.
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