re: funtastic-be careful - for ac Peter,
A couple of questions re your posts:
You mentioned: "The primary assumptions were beta of 0.5 (half the all-ords and not a growth beta at all), and earnings figures of 131 (02), 164 (03) - ~25% growth, and 190 (04) - ~17% growth)".
I would appreciate your comment on the beta value. My impression of beta is that it is a measure of volatility against the rest of the market. The market beta is 1. For FUN to have a beta of 0.5 merely suggests it has low price volatility. Can you comment what the issue of growth has to do with the concept of Beta?
I presume you are using Beta to generate a WACC for the DCF calculation?
A second point is that FUN stated some months ago that they are targeting revenue of $300 million within two years. This appears to much higher than your own assumptions? (Of course whether they achieve it is a moot point, however they have been achievers so far)
To be honest to say that a stock with the high growth rate of FUN and a P/E of 12 is overvalued is a little hard to digest. One of the valuation methods using the future maintaninable earnings concept is the simple PE ratio. From a sector perspective and growth perspective a P/E is not overvalued.....?
And one of the criticisms of doind a DCF on cashflows is that it is highly sensitive to the assumptions made, in particular for high growth stocks. Its not exactly steady state stuff.
Dont get the wrong impression, I am certainly not challenging your statements as I am aware of your knowledge. Just seeking higher understanding of the concepts.
cheers
AC
- Forums
- ASX - By Stock
- TOY
- funtastic
funtastic, page-13
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add TOY (ASX) to my watchlist
(20min delay)
|
|||||
Last
9.4¢ |
Change
-0.001(1.05%) |
Mkt cap ! $10.87M |
Open | High | Low | Value | Volume |
9.2¢ | 9.6¢ | 9.1¢ | $7.368K | 80.68K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 39858 | 9.1¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
9.4¢ | 1998 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 39858 | 0.091 |
5 | 196655 | 0.090 |
2 | 150000 | 0.089 |
1 | 50000 | 0.088 |
2 | 2500 | 0.083 |
Price($) | Vol. | No. |
---|---|---|
0.094 | 1998 | 2 |
0.099 | 3140 | 1 |
0.100 | 50000 | 1 |
0.105 | 78237 | 2 |
0.110 | 14517 | 2 |
Last trade - 15.45pm 28/06/2024 (20 minute delay) ? |
Featured News
TOY (ASX) Chart |
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online