A financial performance analysis of bundura nickel ltd by mr lenon watambwa (2019) abstract
Share prices analysis and earnings pershare: The
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- Source zimbabwe stock exchange table 1.4 Failure Prediction
| Share prices analysis and earnings pershare: The stock of Bindura Nickel Corporation Limited (BIND) is currently trading at 0.1050 USD per share on the Zimbabwe Stock Exchange. BIND began the year with a share price of 0.0945 USD and has since gained 11.11% on that price valuation, ranking it 39th on the ZSE in terms of year-to-date performance. The stock movement can be fully explained by the diagram below Fig 1.2 Shareholders will be pleasantly optimistic about BIND knowing that the stock has increased not only due to inflationary causes but by other factors also. Earnings per Share The Price Earnings Ratio (PE Ratio) is the relationship between a companyโs stock price and earnings per share (EPS). It is a popular ratio that gives investors abetter sense of the value of the company. The PE ratio shows the expectations of the market and is the price you must pay per unit of current earnings. Earnings per share is calculated as ๐ธ๐๐ = ๐๐๐ก ๐ผ๐๐๐๐๐ ๐ด๐ฃ๐๐๐๐๐ ๐๐ข๐ก๐ ๐ก๐๐๐๐๐๐ ๐๐๐๐๐๐ ๐ โ๐๐๐๐ Eps was calculated using data in the table below Electronic copy available at https://ssrn.com/abstract=3521211 23 Year 2016 2017 2018 2019 Net income 42 268 499 45 122 963 53 555 405 54 005 118 Shares 1 239 656 591 1 239 656 591 1 239 656 591 1 239 656 591 Eps 649 070 609 961 5 838 520 13 467 811 Source zimbabwe stock exchange table 1.4 Failure Prediction: We used the Z score model in an effort to predict the possibility of failing in the next 2 years. The analysis is as shown below. Z-Score = 1.2( ๐๐จ๐ซ๐ค๐ข๐ง๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐ป๐๐๐๐ ๐๐๐๐๐๐ ) + 1.4( ๐น๐๐๐๐๐๐๐ ๐ฌ๐๐๐๐๐๐๐ ๐ป๐๐๐๐ ๐๐๐๐๐๐ ) + 3.3( ๐๐๐๐ ๐ป๐๐๐๐ ๐๐๐๐๐๐ ) + 0.6( ๐๐๐ซ๐ค๐๐ญ ๐ฏ๐๐ฅ๐ฎ๐ ๐จ๐ ๐๐ช๐ฎ๐ข๐ญ๐ฒ ๐ฉ๐๐๐ ๐๐๐๐ ๐๐ ๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐๐ ) + 1.0( ๐๐๐ฅ๐๐ฌ ๐ป๐๐๐๐ ๐๐๐๐๐๐ ) = 1.2 ( โ28639118 96263298 ) + 1.4 ( 7936422 96263298 ) + 3.3 ( 1416608 96263298 ) + 0.6 ( 40240408 5602890 ) + 1.0( 45122963 96263298 ) Download 1.23 Mb. Share with your friends:
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