AMC 0.86% $15.24 amcor plc

Net debt to ebitda will be sub 3 which is very normal and...

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    Net debt to ebitda will be sub 3 which is very normal and sustainable for AMC.

    EPS growth is the key over the long term and this will be a record this year. but for reference in 2006 SOI were 1bil, now its 1.5bil. (You need to adjust for the amortisation of intangibles to get the adj eps; >70 US cps)

    NTM PE of <15 seems pretty reasonable given
    i) Amcor PE has varied from 11 (GFC/Covid) up to 25 ish over its listed life.
    ii) currently growing very nicely (EPS growth of 15%)
    iii) risk free rate is at record lows with other high quality businesses trading at stratospheric multiples (ie REH is at 60x, BRG at 45x)

 
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