P/E ratios and the value a company trades at is an interesting...

P/E ratios and the value a company trades at is an interesting topic. So far Aef is trading with a P/E ratio of 77. Historically high but I feel there may be several reasons why it is close to fair price. There are many tail winds happening for this company to justify the valuation.
1. Over 1000 new members are joining every month and only last year it was barely 500 per month
2. Fund performance out-paces the board index
3. Last year we were included in all ords (top 500) and there’s some chance ex we could enter asx 300 with an announcement in June. We are almost number 300 in market cap if you sus out market index website.
4. If the boarder market improves in 12 months fund managers generally do well as a sector
5. All the recent disasters must be frustrating the general public and they are likely to vote with their money

So it is possible eps growth may hover around the 50% range in the short to medium term and hence the juicy large P/E ratio.