Extremely good point. On a simple P/E multiple, this looks reasonable. Then you start looking at EV/FCF and the story is a little different.
The question I have is should one include any cash spent on growing the business (in this case, inventory/store roll-outs) when calculating FCF? (i.e. Op CF - growth cash spent). Otherwise, management could simply maintain the business and an EV/FCF would show you better results.
I might also point out that if that's the case, VOC has a completely different valuation.
Ann: Appendix 4E, Annual Accounts & Performance Guidance, page-10
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