Purple Rain

April 16, 2024
Josh Viljoen
Josh Viljoen

An update on my Purple Group Valuation Estimate


On March 25th I posted on FinMeUp as well as on X (formerly Twitter) my estimate of the fair value of Purple Group Limited. At the time I had determined a rough fair value estimate of PPE using both a price to sales multiple and a price to earning multiple and came out to an average fair value of 87.5c when the at the time of the share was trading at 122c and as a result I had concluded the share to be overvalued by approximately 28.27%


A little over 5 months since my initial post and the share is now trading at 85c and inline with what I had initially determined to be a fair price. It is always important before purchasing any stock to have some idea of what you think it is worth no matter how simple the model is. Even a wonderful company may not be a good investment if it is not at a fair price. 


To read my initial fair value estimate post click on this link below:


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