re: Ann: SEYMOUR WHYTE ANNOUNCES STRATEGIC AC... I think the...

re: Ann: SEYMOUR WHYTE ANNOUNCES STRATEGIC AC... I think the purchase price may have quite a margin of safety in it - but obviously don't know about the future expectations of the business.

Revenue CAGR of 20% from 08 to 13, and for the most recent year an(NPAT) profit margin of 10% after tax (SWL get about 3% after tax). These are excellent metrics on the surface IMO. If the profit margin has been stable over this time (which is a big assumption), then using the old fashioned (and very superficial) PEG ratio = 1 rule of thumb, the business would have been worth $96m at 20x $4.8m. The deal was made at $41m approx. So seems conservative for such a growth rate.

GLTA and DYOR