Valuation

As at Dec 19, 2018, here are the key stats for PNC;

Forecast EBITDA growth of 20%

Forecast profit growth of 14%

"Material sustainable opportunities" ie an acquisition likely in next 6 months

And yet;

Share price $2.80

Current P/E 9.5times

Current Div yield: 5.1%

In summary, this is a very well managed, consistently high growth company, with a dividend yield above 5% and a p/e below 10%.

Is this the cheapest stock on the ASX today? If they just deliver on the forecast (14%), and as a result, the p/e (conservatively) expanded to 12 times, the share price in a year would be 2.80 x 1.14 x 1.2 = $3.83, a 36% gain on today's price. 

If the p/e expands to the ASX average of 15 times, the share price would gain 76%.

If, via the acquisition, they beat the current forecast... even better. 

And the downside? It seems already priced in to the current share price.