Hi Lost, There is a mistake in the revenue calculations. FY 21 revenue is based on average FUM of around 103B. When MFG looses 18B, the starting point is $118B as at now. Therefore, you can say FY 2022 and forwards years they will maintain $100B FUM range, there won’t be loss of revenue. Profit range should remain around $450M, EPS of $ 2.35 to 2.50. As it also has other principal investments like Barrenjoey , it should command higher PE ratio of at least 12+. This is a big come down, but they will have re-established themselves to get a higher ratio. I don’t know what else Platinum is involved in. If nothing else it could be the reason for low PE. Next question is dividend yield. At 90% payout ratio it will be around $2.10. Even at $30 that is 7% yield. Barrenjoey has been involved in lot of transaction, some are yet to be completed. I am sure they will earn enough revenue for next 2 years from these deals. With low interest gradually being removed these IB activities can come to a standstill.
MFG Price at posting:
$29.36 Sentiment: Buy Disclosure: Held
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