News: MFG Magellan Financial Says Total FUM A$117,955 Mln As At Aug 31, page-13

The low PE for MFG may be as a result of Barrenjoey Capital investment. IB business is notoriously bumpy and it has lot of competition. If MFG is discipline and refused to throw further Capital , it has no further cash commitment and write off the $156m at worst. Barrenjoey probably have sufficient funds and revenue to last few more years on its own. Total capital raised was 156m from MFG for 40% and therefore grossed raise is $400m. Total loss in FY 21 is 102m and any other capitalised cost will come off the $400m. This left over amounts will see them through for few years of further losses until they establish themselves or fold up. Mind you IB wages bills are not cheap at all. Does this makes sense to you guys.? Is this what is causing low valuation of MFG and if so it doesn’t make sense as total potential loss is capped at maximum of $156 as mentioned above.