Hey mate, appreciate you sending that through. Looks quite reasonable, and it was a nice touch adding in Opteon's results (certainly gave me a better insight on the industry).
I had a look today & put something together fairly quickly. My thoughts differ slightly on the revenue & EBITDA % amounts, but are in a similar ballpark; I have detailed this in my model a bit.
I have also used a much lower discount rate based on my calculations of what the WACC should hypothetically be: As you can see, my valuation is a fair bit lower than yours, but I think that's mainly driven by the fact that you have factored in dividend yield. I have given the dividends a second thought though & can see it being very reasonable that they return back to paying dividend in FY22 (could even be sooner if their back half of FY21 is just THAT good). Certainly counts for something, but I just don't like factoring it into my DCF!
Seems like ACU are on a rampage as far as their business performance goes, so provided the market doesn't absolutely crash anytime soon I think we should be ok.
Let me know what you think, Xxx12
ACU Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
