IMO share price is still undervalued vs intrinsic value.
Based on my analysis (caveating that I own shares in DMP and the below is based on my own calculations so please complete your own research prior to making any investment decisions):
- DMP's top-line revenue increased 33% in FY20 and has grown at an average of circa ¬22% in the past 5 years.
- Free cash flow to equity was approximately $250m in FY20 (including approx. $311m in operating cash flow, $100m capex, and $37m net debt issued).
- Applying the FCFE Gordon Growth valuation model shows an intrinsic value range of $103/share to $315/share, assuming long term growth rates of 7% to 9% to FCFE.
- This assumes a 10% required return on equity.
- This implies a range of potential upside to intrinsic value of approx. 12% to 200%, with 70% as a mid range.
There are not many ASX listed companies with earnings growth at circa 20-30% annually. DMP has the earnings growth of a growth stock, as such it is valued like one in the market.
IMO DYOR.
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Last
$36.09 |
Change
0.520(1.46%) |
Mkt cap ! $3.288B |
Open | High | Low | Value | Volume |
$35.90 | $36.20 | $35.71 | $6.320M | 175.6K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
7 | 407 | $36.08 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$36.10 | 388 | 11 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
4 | 188 | 36.080 |
3 | 38 | 36.070 |
10 | 676 | 36.060 |
12 | 604 | 36.050 |
2 | 100 | 36.040 |
Price($) | Vol. | No. |
---|---|---|
36.090 | 246 | 7 |
36.100 | 206 | 15 |
36.110 | 272 | 3 |
36.120 | 304 | 4 |
36.130 | 104 | 2 |
Last trade - 14.05pm 12/07/2024 (20 minute delay) ? |
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DMP (ASX) Chart |