Tuesday 19 June 2007

PRICE/EARNINGS RATIO

As a quick measure for a player's real value, i like to use (not exclusively) a price/earnings ratio, similiar to the one used to pick stocks on the sharemarket. I calculate this ratio simply by dividing a player's current price by their yearly average (i.e. Mark McVeigh $306,900/84.42= 3,635). Below is a snapshot of the Top 20 players by Average:


James Bartel (GEE) $445,600
3,726
Kane Cornes (PTA) $430,300
3,954
Tarkyn Lockyer (COL) $405,600
3,775
Dane Swan (COL) $385,700
3,654
Brad Johnson (WBD) $370,800
3,548
Scott West (WBD) $357,700
3,459
Cameron Bruce (MEL) $397,600
3,850
Josh Drummond (BRL) $313,500
3,129
Heath Scotland (CAR) $361,400
3,638
Scott Thompson (ADE) $331,600
3,355
Andrew Carrazzo (CAR) $372,500
3,769
Chris Judd (WCE) $366,100
3,715
Daniel Cross (WBD) $350,300
3,556
Matthew Pavlich (FRE) $365,700
3,716
James McDonald (MEL) $376,500
3,838
Adam Simpson (KAN) $345,200
3,547
Leigh Montagna (STK) $354,400
3,642
Dean Cox (WCE) $371,800
3,838
Gary Ablett Jr. (GEE) $342,500
3,571
Matthew Priddis (WCE) $387,300
4,042


Obviously there are numerous other factors to consider, however I believe this provides a good guide as to which 'GUN' players may be cheap at present. For example from the above, I would say Scott West, Scott Thompson & Josh Drummond look cheap, and Matthew Priddis, Cameron Bruce & possibly Kane Cornes look expensive. Just something else to think about when making those vital last few trades.

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