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45.3¢ humm group limited

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ijm291

34 Posts.

2

06/06/20

21:48

Post #: 45081004
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Originally posted by prosperity: ↑

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.

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FXL Price at posting: $1.44 Sentiment: Buy Disclosure: Held
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0 Great analysis

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(20min delay)
Last 45.3¢		Change 0.003(0.56%)		Mkt cap ! $223.5M

Open	High	Low	Value	Volume
44.0¢	45.5¢	44.0¢	$58.65K	130.6K

Buyers (Bids)

No.	Vol.	Price($)
4	5228	45.0¢

Sellers (Offers)

Price($)	Vol.	No.
45.5¢	22528	2

View Market Depth

No.	Vol.	Price($)
4	5228	0.450
3	11423	0.445
2	8279	0.440
3	206942	0.435
5	50062	0.420

Price($)	Vol.	No.
0.455	22528	2
0.460	27763	5
0.465	7452	4
0.470	26776	6
0.475	20227	5

Last trade - 14.34pm 31/07/2024 (20 minute delay)

HUM (ASX) Chart