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1 comment(s). Last comment by Albukhary 2023-12-11 17:32

Albukhary

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Posted by Albukhary > 2023-12-11 17:32 | Report Abuse

Before Covid 19, Company A has Asset 100mil, Liability 90mil, can generate profit 10 mil per year, you value it at PE 25times or RM250mil.

During Covid, Company A earn a lot of money RM80mil, and use the RM80mil to pay off the liability.

After Covid, Company A Asset 100mil, Liability reduce from 90mil to 10mil, but now only can generate profit 3 mil only (because demand is drop and supply increase), so you value it at PE 10x or RM30mil.

What is you logic?

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