THE RATIONAL INVESTOR

Stocks are simple. All you do is buy shares in a great business for less than the business is intrinsically worth, with management of the highest integrity and ability. Then you own those shares forever. I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.

June 03, 2008

China Mobile 0941 Valuation

 

  2007 2008 2009 2010 2011 2012
EPS 4.65 5.81 7.26 8.57 10.11 11.93
PE at 115 24.74 19.79 15.83 13.42 11.37 9.64
PE at 100 21.51 17.21 13.77 11.67 9.89 8.38
Dividend 2.16 2.61 3.27 3.86 4.55 5.37

 

reasonable price as of 2009: 7.26*20 = 150

reasonable price as of 2010: 8.57 * 20 = 170

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