SRX 0.00% $33.55 sirtex medical limited

sirtex and cochlear 2009 eps

  1. 221 Posts.
    Based on forecast provided by Comsec, Sirtex's 09 EPS is expected to be 27.1 cents and Cochlear's 09 EPS is expected to be 241.6 cents.

    This means Sirtex is trading at around 7 2009 EPS whereas Cochlear is trading at around 20 2009 EPS.

    So is Sirtex undervalued significantly or is Cochlear overvalued significantly?

    I believe it is the former and the conclusion from this simple exercise is that ,on a relative basis, Sirtex is very cheap. A PE expansion of 7 to 20 will result in Sirtex's share price to move to $5.40.

    I do my own forecast and believe that the 27.1 cents 2009 EPS provided by Comsec is not a stretch.
 
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