Miranda Downs is an excellent example of real world pricing, thanks for highlighting it. So I'll take the livestock / land assumed valuations from there and apply them to the AAC case. Not perfect I know, but certainly more accurate than my original assumptions.
Livestock:
Miranda: 55,000 value $80m
AAC: = 350,000 / 55,000 * $80m = value $509m
Land:
Miranda: 438,000 ha, value $100m
AAC: 5,400,000 / 438,000 * 100m = value $1,233m
Total AAC assets = $1,742m
Revised NTA per share = $2.91
The revised NTA above is still a healthy premium to the current stated value of $1.75, this implies that the current share price of $1.50 still has some room to grow?
Obviously a big caveat is the individual properties that AAC own and their specific circumstances, but I think this is a very positive sign.
The implications as far as the level of profitability expected from a firm with this size of asset base are of course another topic of debate.
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