Sorry for the late reply. I was very busy last few weeks. Here is my calculation
To estimate the forward P/E ratio for Websol Energy at the end of the financial year, we’ll use the following steps:
1. First Quarter EPS:
- Websol Energy’s EPS for Q1 (ending June 2024) was ₹5.42.
2. Assumed Quarterly Growth:
- You specified a moderate growth rate of 10% per quarter.
3. EPS Projections:
Let’s calculate the EPS for the remaining three quarters assuming the 10% growth rate per quarter:
- Q2 EPS = ₹5.42 × 1.10 = ₹5.96
- Q3 EPS = ₹5.96 × 1.10 = ₹6.56
- Q4 EPS = ₹6.56 × 1.10 = ₹7.22
4. Total Estimated EPS for the Full Year:
Adding up all the quarters:
- Full-year EPS = Q1 EPS + Q2 EPS + Q3 EPS + Q4 EPS
- Full-year EPS = ₹5.42 + ₹5.96 + ₹6.56 + ₹7.22 = ₹25.16
5. Current Stock Price:
- The current stock price of Websol Energy (as of September 2024) is approximately ₹1,111.65(
6. Forward P/E Calculation:
The forward P/E ratio is calculated as 44.17.
Note: in the first quarter results company has not utilised full capacity.
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