Online sales as % of total sales are comparable: Myer is 24% with PMV roughly 25%.
On NPAT, PMV is about 4.5 times MYR. Yet PMV is more than 9 times the market cap of MYR.
On EV/EBIT, PMV EV is roughly 3080-809(breville share)-72(Myer share)-400(net cash) = ~1800M. EBIT of circa 350, so EV/EBIT of 5.14. MYR EV is roughly 360-155(net cash) = 205M. With EBIT estimated to be 180 to 200 for FY22, Myer EV/EBIT is only 1.1, almost 5 times cheaper than PMV!!!
With a 100 year old brand name, amongst top 10 trusted brand in Australia based on recent surveys, and a 3.5million active Membership base, does this justify a five times valuation discount to PMV?
The valuation gap needs to close soon! Myer if performing at this current rate needs to be trading at $2 per share as it demonstrates its outperformance.
MYR Price at posting:
44.0¢ Sentiment: Buy Disclosure: Held
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