There are two other aspects that I wanted to add about current valuation of GQG that needs to be considered: 1. If a takeover offer was made around current share price levels, it would be opportunistic and leave a lot of future growth on the table that we have missed out on (although I believe Rajiv Jain holding over 50% would block a takeover). Also a buyback would undervalue the true value of GQG and current shareholders selling would miss a lot of upside. 2. GQG is poised to grow at a higher growth rate than peers. If 18 times earnings is reasonable today and GQG grows at 20% per annum for the next three years (which is lower than current growth rate), all of a sudden earnings becomes 20c and 18 times earnings is $3.60.
This is what I believe is missing in the valuation of today and current pricing. What price should be paid today if underlying business is growing at a good rate?
Best of Luck Lost
GQG Price at posting:
$1.46 Sentiment: Buy Disclosure: Held
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