CSC share price evaluation review

I have got this rather simplified yet achievable approach to estimate CSC fair value in the next 12 month.

1. 1H08 net profit 19m.

2. 2H08 net profit estimate 27m (very conservative guesstimate) which is solely based on the 2 IRs incomes:
- Sands IR contracts + Resort World IR contract = 240m+54m+6m=300m,
- assuming only 90% completion by end march 08 (FY08 date),
- assuming a conservative profit margin of 10% (realistic range shld be 15-20%),
- so net profit for 2H08= 300mx90%x10%=27m

3. so FY08 conservative net profilt = 19m+27m = 46m

4. FY08 EPS = 46m / 1,126m ordinary issued shares = 4.1c

So now the current market paying CSC at 32c/share, ie trading FY08 PE at 7.8x, or 37x FY07 (FY07 EPS = 0.86c).

so lets have a look on how CSC price ranging along with the FY08 EPS 4.1c

at PE 10x, share price => 41c
at PE 20x, share price => 82c
at PE 30x, share price => $1.23

Conclusion:
Current market trading CSC at 32c, ie the current down market still values CSC at 37x FY07 PE (0.32/0.0086), CSC traget price for the next 12 months should be within $0.82 -$1.23. This is supported by:

1. FY08 EPS of 4.1c is based on a very conservative calculation.

2. When market sentiment turns bullish.

3. When it is in bullish market sentiment, CSC share price trading at PE 20x - 30x is undemanding.

4. More analysts coverage.