Book Value & EPS
Hey there, So I'm having trouble with Kimberly Clark from México (KIMBERA.MX) So short story Book Value (Equity / Outstanding Shares) & EPS (Net income / Outstanding Shares) are the same value (1.67 pesos) (is that weird?) and at that time stock's price was 38.5 pesos (12/31/2019) which seems quite overvalued. My question is How come the stock' price gets 23 times the book value. and why does this happen? Specially when the debt ratio is 88% and leverage ratio is 700%. Must mention the company is "healthy" (according to them) Price to date (04/11/20) is 34.78 pesos. Working capital ratio is about 1.3. I did a quick quite conservative FCFF and theoric value form 5 years projection is 69.35 pesos and that seems nuts. Even in a worst case scenario I get 49.3 pesos projection which is still so overvalued and in both situations "coronavirus" is considered. What am I missing ??.
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