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$1.35 empired ltd

Ann: Appendix 4E and 2016 Annual Report-EPD.AX, page-10

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stayer

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24/11/16

14:16

Post #: 20859293
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Originally posted by Value21 ↑

I have a conservative EPS forecast of $0.0475 for FY17, and my Bull Case EPS is $0.051. Assuming a 13-14 x Multiple, this would equate to a SP of 65c for the conservative estimate, and around 70c for the Bull Case.

Given management's guidance for improved EBITDA margins, I have FY17 EBITDA sitting at around $15.5M, and given the EBITDA to OCF conversion rate of 105%, I think Op Cash Flow should come in at around $16M, all else being equal.

If we valued the stock on it's cash flow (assume EPD trades at 6.7 x Op Cash Flow), then my PT would be materially higher. I'm not banking on the market awarding a higher cash-flow multiple for EPD, however if they do then I think that there's a lot of upside in this stock.

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value 21
looks like the upside is coming now!
close over 50c (even 49c strict technical i think) will get it noticed - i would favor a close of above 50 than 49 though -something about those round numbers!

EPD Price at posting: 49.5¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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