Table: Petdag's last 8 quarterly results
Chart 1: Petdag's last 29 quarterly results
Petdag (closed at RM21.44 yesterday) is now trading at a trailing PE of 34 times (based on last 4 quarters' EPS of 64 sen). Based on this PER multiple, Petdag is overvalued. However, Petdag's bottom-line has recovered substantially in the past 2 quarters. If this improved performance can be maintained for next 2 quarters, then its full-year EPS could be 94 sen. This would push down its PER to 23 times. At this PER, Petdag is deemed reasonably valued.
Petdag tested its long-term uptrend line with support at RM16.00 in November 2014. From there, it staged a good rebound which sent the share price to a recent high of nearly RM23.00.
Chart 2: Petdag's monthly chart as at Aug 6, 2015 (Source: ShareInvestor.com)
Based the improved financial performance, reasonable valuation & positive technical outlook, I revised my rating for Petdag from a SELL to a HOLD.
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Petdag.