As clearly stated in my first post, the 14x multiple assumes they continue to generate $76 million net profit per half. In reality, they won't earn $152 net profit over the next 12 months - therefore the profit will likely be lower and thus the multiple higher than what I have estimated. I'm happy to explain it further for you champ though I suggest you school yourself in some basic economics & investment fundamentals before you blow yourself up.
Rather than discuss my figures - I would be absolutely fascinated for you to put forward a rationale argument as to why Magellan is worth the current market price?
The rationale cannot include that it's a good company, a cash-flow monster or any other verbal diarrhoea. I'm asking you to explain in numbers why a company with declining profitability to the extend that MFG is experiencing, is worth a premium to other fund managers who are growing their profit.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)