That was kind of my point. Let's say they have a beta of just over one and market risk premia is 7%. This would suggest a long term cost of equity of somewhere around 11-12% nominal. Personally I'd like a bit more as a buffer. Given they are carrying all their assets without any writedowns and (thus) supporting that cost of equity while also trading at a discount to book value, any buy-back should result in a net increase in ROE on a go forward as a result of buying the delta.
Ann: Announcement of buy-back - Appendix 3C, page-167
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Last
$21.76 |
Change
0.350(1.63%) |
Mkt cap ! $66.99B | |||
| Open | High | Low | Value | Volume |
| $21.49 | $21.76 | $21.32 | $97.85M | 4.532M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 1380 | $21.75 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $21.77 | 28571 | 3 |
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| Last trade - 16.10pm 01/07/2024 (20 minute delay) ? |
| FMG (ASX) Chart |