ACL Take Over Proposal Wishful Thinking, page-3

PE ratio is one of the common measures used by the market yes.

However, it is just a point in time measure and doesn't take into account normalised and ongoing value on a relative basis.

This is not to discount the benchmark above, but don't rely on it solely and gets to the point that timing for ACL share price differential wise is going to be as good as it gets.

One of the main contributor of ACL is its hospital stream having acquired St John of God and its fleet of hospital laboratories with a heavy presence in VIC including many large public hospitals.

Do some research on VIC public health and you will see that privatisation of public pathology labs has ended and all current private providers of laboratory services in public hospitals will lose out and my bet is ACL will be the biggest loser from this as a result of State Government focus to re centralise control which is largely learnt from mistakes made managing the Covid pandemic response.

Pathology is all about scale and once you reach that critical mass, it is a great business model but if your below it cash burn will accelerate.

Healius scale don't have such problem given it is more than 2x greater than ACL in its current form.