"Using 'underlying NPAT' back of envelope i have fy17 EPS of 17.8c. Hence, with SP $2.66 = PE ratio just under 15x. That's not bad for a business that's hit a bump in the road in FY17 but beyond that can increase earning 20+% yr on yr."
I think you'll need to re-do your calculations, because I'm not sure where 17.8cps comes from.
Even after today's fall, the P/E multiple, on my numbers, looks to be 20x, as opposed to your 15x (And I'd argue that even 15x is too high a multiple to pay for this business given the financial results of the June half, and the guidance for the current half)
As for "beyond that can increase earnings 20+% yr on yr", given the core business has never delivered that sort of organic growth performance ever before, on what basis do you reckon it will be able to do so beyond the current "bump in the road"?
ISD Price at posting:
$2.53 Sentiment: None Disclosure: Not Held
