Amaysim lists tomorrow at 12 EST.
My analysis shows:
Benchmarks could be TPG, M2, INet, Amcom, My Net Phone and Big Air Group. I have used these as comparisons.
Profitability
Amaysim EBIT to Sales margin of 11 % versus benchmarks above at 11 to 26%.
Asset Management
Return on Assets for Amaysim at 88%, amazing versus industry above ranging from 18 to 44%.
Goodwill
At the $1.80 price you are buying some assets and the rest goodwill at 91% of purchase price. Amazingly high but compares with benchmarks ranging from 76 to 91% .
Pricing
Relative to benchmarks Amaysim is being sold very cheaply.
Summary
Very profitable business being sold at a cheap price relative to benchmarks.
However industry benchmarks being sold at really expensive prices.
Amaysim is quarter of the size of big players, TPG, M2 and INet and bigger than the other three benchmarks.
Based on number analysis the company should be selling for more than $1.80 per share.
What price expectations do you have for tomorrow ?
Keen to hear everyone's views
