re: Ann: Acquisition of 63 premium childcare ... I think the analysts will be factoring in yet another bunch of centres at 4x EBIT, as long as there are still plenty of vendors at that metric.
I guess the SP will be based on the assumptions used, for capital requirements etc. You can justify a lot of capital raising at that metric too - 17% return after tax in theory if ungeared.
Eventually the values of childcare centres will go up, I guess, and then gem will have a harder time finding growth. Until then above 20x forecast earnings seems easily justifiable to me.
re: Ann: Acquisition of 63 premium childcare ... I think the...
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Last
$1.29 |
Change
-0.020(1.53%) |
Mkt cap ! $1.044B | |||
| Open | High | Low | Value | Volume |
| $1.31 | $1.31 | $1.29 | $481.6K | 371.7K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 47793 | $1.29 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.30 | 52 | 1 |
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| Last trade - 16.10pm 19/07/2024 (20 minute delay) ? |
| GEM (ASX) Chart |