Start with valuing free cash flows.
Your best estimate is $34.5m for H1 FY20 x 2.
Then apply a discount rate (12% is ok)
Work out a NPV.
FXL is valued at about 8 times its free cash flows. P/E ratio of 8 is pretty good, but H2 FY20 is a big unknown. We'd expect smaller profits based on the Q3 FY20 update, which means we could be closer to 10 times the earnings in reality.
You decide whether that is considered cheap or not.
The biggest red flag is the slowness of customer growth. 10% is minimal is a super hot industry where competitors are growing at >100% p.a.
DYOR and don't fall for unsubstantiated fluffy valuations of posters who expect FXL to fly like its competitors. FXL is a struggling business undergoing a major transformation. Not saying it will fail, but silence speaks volumes.
Start with valuing free cash flows.Your best estimate is $34.5m...
-
- There are more pages in this discussion • 1,120 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add HUM (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
74.5¢ |
Change
0.015(2.05%) |
Mkt cap ! $366.0M | |||
| Open | High | Low | Value | Volume |
| 72.5¢ | 74.5¢ | 72.0¢ | $553.5K | 752.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 40812 | 73.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 74.5¢ | 167470 | 1 |
View Market Depth
| Last trade - 16.10pm 06/09/2024 (20 minute delay) ? |
| HUM (ASX) Chart |