I appreciate PE ratio's don't show whole picture, but want to understand what could justify AEF's PE ratio being so high given lower growth against peers. I use the PE ratio as a margin of safety when I invest and find it hard to think that there is such a discrepancy across ASX listed Fund Managers.
Trying to understand why such a discrepancy. @superman_spas highlighted high ROE ratio which makes sense, but MFG and PTM have higher rates and the PE ratio is much lower.
Would agree high growth in earnings or high growth in FUM but compared to others, AEF is the third highest in industry over a couple of years. PNI or PAC - the two with highest FUM growth fund managers listed on ASX. This disqualifies the Ethical investment branding being a beneficial factor as this market segment is not growing that much. Even MFG is growing FUM at just under AEF rates and it has close to $100 Billion in FUM.
Look forward to yours and other responses.
Best of Luck Lost
AEF Price at posting:
$4.37 Sentiment: Sell Disclosure: Not Held
