@joewolf,
I think that what is overlooked with this stock is that it once was rated by the market on P/E multiples in the high-teens (in the decade after the GFC when it was a small cap darling and formed a large part of the small cap index).
By comparison, before the result, the stock was trading at just 10x P/E and even today, after the sharp share price rise since the result, it is only at about 11.5x.
Now I don't think anything near high-teens is the right multiple for this stock (especially not now with it carrying more debt than it has historically... although, at a touch above 2.0x Net Debt to EBITDA, it doesn't pose any existential threat to the company).
At a stretch, I think it's a market multiple stock, so around 15x-16x, but more realistically a 10% to 15% discount-to-market multiple, i.e.. 13x to 14x, doesn't sound unreasonable.
So I think it still has room to re-rate upwards by around 15% to 20% from its current 11.5x level. Add in an additional 10% to 12% EPS growth in FY2024 from the normalisation of the business following the supply chain disruptions of the past 12 months, and you've still got some 25% upside to the share price, in my view.
By the above reckoning, the fundamental value of the stock is around $12.00.
/
.
- Forums
- ASX - By Stock
- GUD
- Ann: Full Year Statutory Accounts
Ann: Full Year Statutory Accounts, page-18
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add GUD (ASX) to my watchlist
(20min delay)
|
|||||
Last
$10.64 |
Change
-0.045(0.42%) |
Mkt cap ! $1.501B |
Open | High | Low | Value | Volume |
$10.66 | $10.74 | $10.61 | $923.2K | 86.63K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
17 | 1850 | $10.63 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$10.64 | 1020 | 14 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
13 | 1814 | 10.630 |
14 | 1842 | 10.620 |
8 | 2757 | 10.610 |
8 | 4822 | 10.600 |
3 | 747 | 10.590 |
Price($) | Vol. | No. |
---|---|---|
10.640 | 633 | 13 |
10.650 | 2186 | 12 |
10.660 | 1858 | 9 |
10.670 | 4637 | 11 |
10.680 | 1260 | 4 |
Last trade - 12.57pm 28/05/2024 (20 minute delay) ? |
|
|||||
Last
$10.66 |
  |
Change
-0.045 ( 0.14 %) |
|||
Open | High | Low | Volume | ||
$10.67 | $10.73 | $10.61 | 10295 | ||
Last updated 13.15pm 28/05/2024 ? |
Featured News
GUD (ASX) Chart |