Ann: WEBJET ANNOUNCES A $275 MILLION EQUITY RAISING, page-142

thought I'd share some calculations I ran through in determining if I will hold onto my WEB shares.

using annual report as of 29/06/2019 (the more recent full-year reported earnings)

• 2019 EPS = 0.47
• 2019 Diluted avg shares = 136m

Assuming WEB can return to 2019 profit levels;

• New issued shares (cap raising of $346m @ 1.7) = 204m
• New total avg shares = 340m
• EPS = 0.19

With a revised EPS of 0.19, corresponding P/E would look like;

• share price of $3.11, P/E = 16.37
• share price of $1.70, P/E = 8.95

In other words, if you buy now @ $3.11 and take up the 1-1 offer, then your average P/E (@2019 profits) will be 12.66.

Personally, I like good quality stocks at around a PEG of <1. If you take WEB's revenue growth rate over the last 7 years, and again, assuming it can return to 2019+ profits, then 12.66 indicates a PEG of <0.5.

WEB Rev growth rate:
3yr = 33.49%
5yr = 30.45%
7yr = 30.28%

hope this helps. DYOR.