At $2.2B in sales & a NPAT margin of ~7%, do you really believe this business should trade at >30x eps or 2x sales? If your analysis is based on Morningstars fair value estimate of ~$54/share that is what you are saying.
I don't believe this business is better than the ASX index. So lets put an index multiple on it of 22x. I think it is fairly worth ~$36/share, but this is the price only to pay for a market return with higher risk. I'd like to add a 50% risk premium to this price to allow an adequate return above market average, meaning I would like to pay 15x earnings or $20-$25/share. Probably won't get there but that's ok as it isn't that high of a quality business in my mind & should trade at a market discount given current interest rates.
Ann: Trading Update, page-280
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Last
$35.27 |
Change
0.750(2.17%) |
Mkt cap ! $3.261B | |||
| Open | High | Low | Value | Volume |
| $34.25 | $35.27 | $34.22 | $16.17M | 461.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 600 | $35.02 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $35.27 | 8061 | 4 |
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| Last trade - 16.10pm 04/10/2024 (20 minute delay) ? |
| DMP (ASX) Chart |