re: Ann: Acquisition of 63 premium childcare ... I think the analysts will be factoring in yet another bunch of centres at 4x EBIT, as long as there are still plenty of vendors at that metric.
I guess the SP will be based on the assumptions used, for capital requirements etc. You can justify a lot of capital raising at that metric too - 17% return after tax in theory if ungeared.
Eventually the values of childcare centres will go up, I guess, and then gem will have a harder time finding growth. Until then above 20x forecast earnings seems easily justifiable to me.
Ann: Acquisition of 63 premium childcare and educ, page-8
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