Yep. They’re higher than me on EBITDA but below my valuation. Interesting their Val method is sum of the parts, which is probably due to the potential sale of Logistics.
They have a 2021 PE of just 8.4x. The small ords is around 20x. Even discounting against that index and applying a 16x multiple gets me to $1.28 on their numbers. It’s worth noting they expect EPS to fall in 22 and 23 but this is due to a segment mix change and tax losses being absorbed by FY23.
Still LOTS of upside here. They also have a 3c dividend in FY21 even though EPS is expected to be 8c. That’s a low payout ratio. I’d expect something closer to 4c, which gives me a market yield of over 5% and for holders that have owned this for a little bit, a very very high yield.
AVA Price at posting:
72.5¢ Sentiment: None Disclosure: Held
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