Is Now the Time to Buy Xstrata?http://www.fool.com/investing/international/2012/12/12/is-now-the-time-to-buy-xstrata.aspx Rupert Hargreaves
December 12, 2012
LONDON -- I'm always searching for shares that can help ordinary investors like you make money from the stock market.
So right now I am trawling through the FTSE 100 (UKX) and giving my verdict on every member of the blue-chip index. Simply put, I'm hoping to pinpoint the very best buying opportunities in today's uncertain market.
Today I am looking at Xstrata (LSE: XTA ) to determine whether you should consider buying the shares at 1,040 pence.
I am assessing each company on several ratios:
So let's look at the numbers.
The consensus analyst estimate for this year's earnings per share is $1.26 (down 34%) and dividend per share is $0.39 (down 3%).
Trading on a projected P/E of 13, Xstrata appears to be about twice as expensive as its peers in the Mining sector, who are currently trading on an average P/E of around 6. Xstrata's strong P/E and negative growth rate combine to give a negative PEG ratio, which cannot help with my