Ann: Appendix 4E and Annual Report for Year Ended 30 June 2021, page-11

Hey All,

I've had a go at running a SOTP valuation based on FY21 results & presentation dated 18/11/21 with management expectations for which outlines expected growth rates.
I have run a conservative SOTP & a management expectations SOTP valuation to give me some idea on what I believe the business to be fairly worth.
The conservative valuation has assumed half of what management expect for revenue growth rates into FY22 & the expectations valuation has assumed management will execute on the growth rates stated in their presentation. I have keep both valuations with the same EBITDA margins as per FY21 for comparison but expect these to be slightly better in FY22.
Given other financial companies are trading on double digit EBITDA multiples I have again used a conservative 5x multiple for both valuations.

FY22 Conservative SOTP Valuation:

Wealth Segment EBITDA = $33m
Professional Services EBITDA = $10m
Equity Segment EBITDA = $32m
Direct Segment EBITDA = $0.68m

Company Valuation = $76m / $0.57 per share

FY22 Management Expectations SOTP Valuation:

Wealth Segment EBITDA = $40m
Professional Services EBITDA = $18m
Equity Segment EBITDA = $37m
Direct Segment EBITDA = $0.8m

Company Valuation = $96m / $0.73c per share

Based on these valuations I believe the company to be fairly valued, however I've also used very conservative estimates & multiples to arrive at this valuation. In any case I think it is a hold for me right now.

DYOR.

Would love to get any feed back.