Australia's largest stock trading and investment forum Australia's #1 stock forum

VGW, page-950

First 950 Last

Share
Profile

Follow
Flognoggle

107 Posts.

16

04/02/25

10:38

Post #: 77693803
Share

Originally posted by Truthspeaker: ↑

EBITDA multiple of 6.66x is derived from the share buy-back and cash on hand as per FY23 Accounts.

I’ve then used the same valuation metric as VGW used for the buy-back for FY24 and FY25e. One could argue 7-8 times particularly if LE tries to take VGW private.

FY25e key assumptions
1. Revenue growth 18%
2. EBITDA margin 13%
3. Tax rate 30%
4. Cash on hand - payout ratio of 72%, after als
o deducting buying 13% stake in UK business and $20m payment to ATO for underpayment (probably worst case scenario)

The valuation is very sensitive to the EBITDA margin. Focusing on lifting the margin to 15% adds about $1.50.

Expand

Thanks, that's very clear and well supported. Possibly conservative assumptions too. Much appreciated.
Upvote

Reply

Top Stories

CUV

Clinuvel shares dip, even as CEO comes back from temp leave

ASX

ASX Ltd notches upward on sale of company meant to fix CHESS 3 years ago

RML

Resolution's dual-listing to 'expedite growth' – and sets stage for NASDAQ foray

Listen: HotCopper Wire Podcast 013 - They changed the IPO rules (and that's a good thing)

MEG

Iberian expansion: Megado turns to Europe with Spanish copper mines

HotCopper Highlights, Week 24: Israel boosts Energy; Meeka eyes production & Mag7 back

Zip's stunning comeback: Is this the start of a $14 revival?

AVM

'Sure to be busy': Advance's Yuquivo drilling gets off to top start with first-hole hits

Week 24 Wrap: WW3 looms (again); US econ data tepid & silver surfing

Gold, Brent Crude spike as Israel strikes Iran in worst-case scenario

First 950 Last