I would like to hear the main inputs for your dcf. You have to get many years of compounding growth with a pretty low risk adjusted discount factor to get from the current adjusted npat to get $470m of value.
someone else has suggested it will grow at 30% pa. Even though there is no evidence to support this. Given risk, and current risk free interest rate, 10% would be a reasonable low discount rate. In very rough terms this means doubling in risk adjusted current value terms every 3.5 years - doubling in nominal terms every 2.7 years approx. If adjusted npat can keep growing at 30% pa for 7 years, then you might be right.
KPG Price at posting:
$10.50 Sentiment: Sell Disclosure: Not Held
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