Gemini Sea Food

P/E Ratio:
2005
8.69

2006
13.02

2007
13.91

2008
11.63

2009
23.86

2010
40.8

2011
33.11

2012
18.49

2013
n/a

2014
105.11

From the above table, we can see that P/E ratio of Gemini Sea food is increasing with time. In
2008, this ratio dropped a little, but then recovered in the next year. From 2009, P/E ratio of the
company is higher than 20, which indicates that the market anticipates rapid growth and is
willing to pay a price for the shares beyond what is justified by historical earnings. But again,
after 2010, Price to Earnings ratio of the company started declining. In 2013, P/E ratio was
negative as the company faced net loss which caused negative Earnings per Share. However,
Gemini Sea food got better in 2014 with the highest P/E ratio in decade. That means purchasers
identified this company very prospectus and they are willing to pay more for these stocks based
on its current earnings.
120
100
80
60
40
20
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

P/CF Ratio:
2005
0.53

2006
5.7

2007
3.69

2008
-0.89

2009
0.84

2010
40.53

2011
-176.15

2012
5.04

2013
n/a

2014
1.24

The above table reveals the pattern of Price to Cash Flow ratio of Gemini Sea Food from the year
2005 to 2014. P/CF ratio determines the equity value of a company. A low free-cash-flow price

multiple may be unattractive for an established slow-growth insurance firm, yet present a solid
buying opportunity for a small biotech start-up. For Gemini Sea Food, P/CF ratio is increasing
with time, though there were declining ratios in 2008 and 2009. After that, there was a negative
price to cash flow ratio in 2011, because of negative net operating cash flow. In 2014, P/CF ratio
is 1.24 which is positive and indicates positive cash flow per share. These small ratios are
preferred because they reveal a firm generating sufficient cash flows that are not yet properly
considered in the current share price. So, smaller P/CF ratios are desired over bigger P/CF ratios.
P/B Ratio:
2005

2006

2007

2008

2009

2010

2011

2012

3.05

1.98

1.83

4.42

5.99

138.89

289.12

20.75

2013
n/a

2014
33.9
5

From the above table, we can observe that Gemini Sea Food has low P/B ratios. A lower P/B
ratio could mean that the stock is undervalued. However, it could also mean that something is
fundamentally wrong with the company. We can see that, in 2010 and 2011, this company had
very high P/B ratios, which may indicate that the company has been earning a very high return
on its assets. In 2014, this ratio is very low and may be a warning of negative forward looking
investor confidence (e.g. poor earnings projections).
Projected Price:
Gemini Sea Food has average growth rate of 0.88 over the last 10 years, indicating the company
is not working very well toward sustaining in the market and has not much anticipation to grow.
The forecasted price of the stock in 2015 is Tk. 129.06. However since the current market price
of the stock is Tk. 146 (October 12, 2015) we can see that it is being overvalued in the market
and investors should be cautious in investing in this stock.