In short, when doing a valuation of any co, one can utilise a miraid of different methods and arrive at a million different valuations. At the end of the day, every method has it's merits, it all depends on finding a buyer who also sees the same value in the company, and in the case of shares, the market has been established for exactly that reason.
In HFA's case, they have a PE based on Fcast Earnings of around 5 to 9 times, depending on what one's view is about their NPAT- before extraordinary items. I arrived at the conclusion regarding using FUM as an indicator of value because I have recently seen similar deals done based on FUM, and having used those metrics compared to HFA, they make HFA's current market cap look either close to the mark or over valued (IOOF was a recent example where about $54mil was paid for a fund with about $9bl under management (going off memory again so don't quote me on the exact figures lol). Bear in mind that HFA has negative Net tangible asstes and debt of about $150 ot $170 mil or so (going on memory).
That is the fundamentals of HFA as I see them, but for day trading purposes I mentioned the logic because I am trying to anticipate what the market may think and how this will provide me with a short term trading opportunity while the market fights out what a fair value for the shares is.
