Forward EV to EBITDA (assuming upper range guidance is achieved)
4
2
Current PE ratio
7.4
3
Forward PE ratio (assuming an estimate of 40m NPAT)
5.7
4
Current Debt to EBITDA
0.96
5
Forward DEBT to EBITDA (assuming no further borrowings)
0.73
6
Forward DEBT to EBITDA (assuming full debt headroom used)
0.97
EV to EBITDA is low, PE ratio is very low, and debt to EBITDA is at a comfortable level.
ACF management (along with many other companies) aim for debt to EBITDA of approx. 1. If they use their full debt headroom of $16.6m, they will still be below 1 (assuming they achieve guidance). I suspect they will use a large portion of this headroom for growth capex this financial year.
ACF is in a really strong position if they achieve guidance. History suggests that they will achieve guidance and probably even exceed it.
My new share price target is $1.19 by end of FY24.
ACF Price at posting:
85.0¢ Sentiment: Buy Disclosure: Held
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