That's a nice bow you've tied over the market but this the CCP forum.
If CCP goes into FY21 with about 600m in cash and PDLs/Loans, it should be able to make around 70m on that (circa 12%+ historical ROC). The covid impairment has been factored into that asset figure and the resulting lower collections.
Now things could get worse, but it's likely forms of stimulus to consumers will be drawn out, and CCP has a big chunk of cash to deploy. Depending on the velocity of that cash being invested, FY21will still likely well exceed 70m NPAT.
The company has 67.3m shares out there, which would give it an FY21 EPS of $1.04+. So the stock is priced at $16, which is a standard multiple of 16.
From my point of view CCP seems rationally priced by the market. Obviously if second waves shut down more major economies that weaken consumers may adjust that down, but as it stands it makes sense to me.
CCP Price at posting:
$15.97 Sentiment: None Disclosure: Held
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