Finweek English Edition - - SIMON SAYS -

We got a de­cent trad­ing up­date from Capitec* with HEPS for the f irst six months ex­pected to be 22% to 26% higher. Con­sid­er­ing that the stock has a his­toric P/E of just over 22 times, this is ex­actly what you want to see – earn­ings grow­ing faster than the his­toric P/E. It not only jus­ti­fies the high P/E, but will also see it re­duc­ing when the re­sults are pub­lished as the earn­ings part of the P/E will in­crease, re­duc­ing the over­all ra­tio.

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