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Providing investors with the
tools to make informed decisions.
 Tracking 710 U.S. listed China Stocks and Counting...
 Tracking 764 U.S. Stocks and Counting...

 China Green Agriculture (NYSE:CGA)

Tuesday, May 12, 2009
Potential Valuation Scenarios
Valuation Scenarios:

Data Inputs:

Fiscal Year Ends in June
 
Date 4/13/09 5/12/09
Price $4.26 $7.35
12 Months Trailing EPS $0.39 $0.48
Published 2010 Analyst EPS Estimates a $0.71 $0.71
Future EPS Growth Rate Based on 2010 Estimates a 43% 23%
Trailing P/E Ratio 10.92 15.21
PEG Ratio (P/E divided by growth rate) a 0.25 0.66

a CGA is not paying a full U.S. tax rate.  Therefore, All EPS numbers have been adjusted by the GeoTeam® to reflect an U.S. tax rate of 36%.

Short-Term Valuation Scenarios

Date 4/13/09 5/12/09
Price Based on P/E of 25 on Four Quarters Trailing EPS $9.75 $12.00
Price Based on P/E of 20 on Four Quarters Trailing EPS $7.80 $9.60
Price Based on P/E of 15 on 2010 Analyst EPS Estimates b $10.65 $10.65

Long-Term (12 Months Forward) Valuation Scenarios

Date 4/13/09 5/12/09
Price Based on P/E of 25 on 2010 Analyst EPS Estimates b $17.75 $17.75
Price Based on P/E of 20 on 2010 Analyst EPS Estimates b $14.20 $14.20

Peg Ratio Analysis - Common rule of thumb that PEG ratio should be less than 1.0

PEG Ratio Less than 1? YES

b 2010 Analyst estimates and the future EPS growth rate may prove to be conservative in light of the company's third quarter report.  The GeoTeam® will provide an update if warranted.

These scenarios are not investment advice, but are scenarios based on some commonly used investment guidelines.  They are provided to aid investors in making their own investment decisions.
All research for CGA