DMP, just what is happening?, page-10

IMO share price is still undervalued vs intrinsic value.

Based on my analysis (caveating that I own shares in DMP and the below is based on my own calculations so please complete your own research prior to making any investment decisions):

• DMP's top-line revenue increased 33% in FY20 and has grown at an average of circa ¬22% in the past 5 years.
• Free cash flow to equity was approximately $250m in FY20 (including approx. $311m in operating cash flow, $100m capex, and $37m net debt issued).
• Applying the FCFE Gordon Growth valuation model shows an intrinsic value range of $103/share to $315/share, assuming long term growth rates of 7% to 9% to FCFE.
• This assumes a 10% required return on equity.
• This implies a range of potential upside to intrinsic value of approx. 12% to 200%, with 70% as a mid range.

There are not many ASX listed companies with earnings growth at circa 20-30% annually. DMP has the earnings growth of a growth stock, as such it is valued like one in the market.

IMO DYOR.