I suppose I am saying that 15 times earnings could be a fair top of range value with a cleaned up business, and based on a dividend of 15 cents I was assuming earnings of approx 19cents per share. This got me close to the $3 per share top of range - $2.75 - based on your dividend projection. Similar logic for bottom of range.
As for pricing in known factors. I think that the current price has factored in many of the known factors. It makes certain assumptions about the cost of any class actions and payments to clients for past problems. I think it assumes that the cost will not be too high and the numbers have been disclosed. If the class actions take a bad turn or more turns up on the cost of the past failings then price can fall.
Any significant immediate upside would seem to be limited to a foolishly high priced takeover.
from Buyonfact., page-74
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Last
$1.11 |
Change
0.028(2.55%) |
Mkt cap ! $2.887B | |||
| Open | High | Low | Value | Volume |
| $1.09 | $1.11 | $1.08 | $9.466M | 8.608M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 34 | 450167 | $1.11 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.11 | 667831 | 38 |
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| Last trade - 12.47pm 24/06/2024 (20 minute delay) ? |
| AMP (ASX) Chart |