"Given that free cash flow exceeds statutory profit, I think it is fairly conservative to use statutory profits, to value Fiducian, rather than underlying profits. Based on statutory profit, Fiducian now trades on a price-to-earnings ratio (PE ratio) of about 17.75. If we use underlying profit, then the PE ratio would be about 15.
Either way you look at it, this price remains attractive to me in light of the solid dividend yield, reasonable growth prospects (albeit with ups and downs), and honest, competent, long-serving management. In my book, Fiducian Group remains a Buy. "
FID Price at posting:
$8.60 Sentiment: Buy Disclosure: Held
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