DSK valuation, page-6

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het_tien_roi

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06/07/21

15:44

Post #: 54319493
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Originally posted by Swage_17: ↑

Good to know. So it is as simple as it seems. If one believes the company will be able to grow on 2021 revenues, it's a strong buy.
Realistically, the drop in revenue would be limited to 20% I would say. No growth is priced in at the moment so even if revenue dropped by 20% a PE of 8.5 would be easily justifiable. Point being, downside risk is limited.

I'm not familiar with retail stock PEs. I mostly go for growth companies and a very high quality medium growth company (12% growth per year every year for the long term >20 years e.g. FPH, CSL) trade around a PE of 40. Even if DSK performs well it will not be able to achieve this level of growth for the next 20 years so clearly a PE of 30 or 40 is out. But if it can growth 10% yoy for the foreseeable future, is there any chance of this trading with a PE of 20? I note Lovisa chugging along with a PE in the 30s for the last few years. I guess the key for a higher PE would be international expansion ideally beyond NZ (and into EU/UK/US).

I also note HLG trading at a PE around 13 and that seems to be in a similar boat to HLG. There is some level of growth and their divided yield is mid 8% - nearly identical to DSK.

What are some other players in this retail space trading at? Another one I thought of is The Warehouse here in NZ and that also trades around a PE of 10. But I note their margins are probably horrible and growth is next to nothing (if any).

Dreams are free so lets say Mr King decides on international expansion, a PE of 30 would be 3.5~ x the current PE giving a SP of $13. In the case there is no expansion and a contraction in sales, a PE of 8 would be maintained so the SP would drop by whatever amount the future profits drop by.

I suppose the only real risk to the SP is potential competition or change in trends where consumers stop buying scented candles and diffusers for some new craze

Expand

Dreams are most definitely free

Im thinking 160 stores in ANZ by 2023

- PE of 13 to 17

If UK expansion online and potentially some physical stores open in 2022

- PE 20+

H1 FY22, 7% to 11% growth PCP, then PE 15+

Exciting times, wondering what this FY21 will bring.

DSK Price at posting: $3.77 Sentiment: Buy Disclosure: Held
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(20min delay)
Last 85.5¢		Change 0.005(0.59%)		Mkt cap ! $53.23M

Open	High	Low	Value	Volume
86.0¢	86.0¢	85.0¢	$11.17K	13.03K

Buyers (Bids)

No.	Vol.	Price($)
14	379953	85.0¢

Sellers (Offers)

Price($)	Vol.	No.
86.0¢	10689	3

View Market Depth

No.	Vol.	Price($)
14	379953	0.850
2	1644	0.840
1	344	0.835
1	1200	0.830
2	6136	0.825

Price($)	Vol.	No.
0.860	10000	2
0.870	344	1
0.875	344	1
0.895	6000	2
0.900	59924	4

Last trade - 10.56am 23/07/2025 (20 minute delay)

DSK (ASX) Chart

DSK valuation, page-6

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DSK valuation, page-6

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