Sorry, but this is a terrible piece of analysis.
Take their book value from their balance sheet as at Dec 31st, deduct prepayments and intangible assets and you get an adjusted liquid book value of about $380M.
Then consider additional cash burn in the subsequent four months up until now, further cash burn until the business becomes profitable in what is an incredibly competitive space, plus a rising risk premium on any potential future profits thanks to changing macro conditions and that valuation certainly isn't unreasonable by any stretch.
Sports books are great businesses as mature ones have negative cash conversion cycles, but with monetary policy tightening and risk free rates rising it is not a surprise PBH has been whacked as hard as it has been.
TAKEOVER TARGET, page-52
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Last
47.0¢ |
Change
0.005(1.08%) |
Mkt cap ! $154.4M | |||
| Open | High | Low | Value | Volume |
| 47.0¢ | 47.5¢ | 46.5¢ | $238.0K | 506.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 69664 | 46.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 47.0¢ | 7499 | 1 |
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| Last trade - 16.10pm 12/07/2024 (20 minute delay) ? |
| PBH (ASX) Chart |