Nice Chart !, page-43

Calls about the P/E being too high are naive, not all business are created equal, OFX boasts 20% CAGR over the past 3 years, despite the US business being a drag on earnings and now that they appear to to have broken even profits should be expected to grow exponentially due to the scale the business possesses.

Furthermore P/E does not tell you about the capital intensity of the business, OFX requires minimal capital to grow earnings meaning it is able to achieve increasing returns on capital employed whilst it is still able to pay cash out to shareholders whilst still growing the business.

I havent even mentioned the sticky nature of the client base and the ever increasing globalisation of money flows as strong tailwinds for the business.

Effectively the questions here is will they be able to find another bank to replace Westpac, one would think so thus making any of the recent events irrelevant. If not then the business is effectively finished?

Just my opinion please DYOR