"Valuation multiples We have made the following changes to valuation multiples: Tasmanian gas pipeline reduced from 14x to 10x WestNet Energy reduced from 11x to 7x WA Gas Networks increased from 8x to 9.5x MGH increased from 8x to 8.5x DBP reduced from 14x to 12x Fund and corporate cost multiplier reduced from 11x to 7x
FX rates We have also reset the FX rates we use to convert local currency equity valuation into A$. Changes include:
GBPAUD down from 2.2 to 2.0 EURAUD down from 2.0 to 1.75 NZDAUD up from 0.79 to 0.81 USDAUD down from 1.55 to 1.2
Note that our valuation takes into account the cash on the balance sheet. However, not all of this cash is available to BBI, giving varying ownership levels of BBI in consolidated assets. We do not have visibility on how much of this cash is tied, and how much can be assigned to BBI on a proportionally consolidated basis. This is somewhat offset by not including BBI’s proportionate share of cash held by non consolidated assets. If we remove the cash item from our valuation the valuation falls 5 cps."
BBI Price at posting:
9.0¢ Sentiment: LT Buy Disclosure: Held
