NWL 3.81% $21.80 netwealth group limited

I think shareholders really must struggle with numbers. If you...

  1. 3,672 Posts.
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    I think shareholders really must struggle with numbers. If you look at the underly*ng drivers you can see that to justify its SP you need….

    $200m npat
    which Would take revenue increasing to 2.5 times current level = $450m
    and cost only increasing to 1.5 times current level , that 8s costs only increasing at one third the rate of revenue growth = $150m

    This revenue growth would require fua to be 3 times current level after allowing for decreased margins. Given 15% pa system growth, it would take 5 years and netwealth increasing its market share by 50% to 8.7% to achieve the profit to support the current SP.

    So no wonder the major shareholder cashed in a few dollars.
 
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