Several posters have previously raised concerns about TFS's cash...

Several posters have previously raised concerns about TFS's cash flow, cash earnings etc. I have attempted to compare TFS with a major capital city house investment of the same asset value (x1000 scale), using Cannacord's Equity Research Report on TFS dated 28 Feb 16, and using data for FY17F. I am not a property investor, so I would welcome any thoughts on that part of the comparison. In particular, I have not included the unique housing transaction costs in any of this (stamp duty, legal, agent). Also, I have not tried to compare the relative tax treatment. That is why I have not included NPAT and P/E data.

My take on the comparison (after allowing for TFS in millions and housing in thousands) is:
*Relative borrowings are higher for housing investment;
*TFS can be bought at a discount of 7% on book value (housing 0%);
*Total liabilities for TFS is higher (e.g. tax liability), and equity is lower;
*For TFS, the total assets can be bought 38% cheaper than for housing;
*TFS's cash revenue is around 9x higher in FY17, increasing to around 15x higher by 2023;
*TFS's cash EBITDA is around 5x higher in FY17, increasing to around 10x by 2023;
*TFS has a much higher average rate of asset value and revenue increase, driving faster profit growth.

	Column 1	Column 2	Column 3	Column 4
0		TFS (millions except for % values & P/B)	HOUSE (thousands except for % values, shares and P/B)	COMMENTS
1	Total Asset Value	$ 1,467	$ 1,467	Close to median Melbourne house price
2	Borrowings	$ 266	$ 378	Average Melbourne mortgage Aug 15
3	Total Liabilities	$ 734	$ 378
4	Equity Value	$ 731	$ 1,089
5	Enterprise Value	$ 997	$ 1,467
6	Buy Price for 100% of Equity	$ 677	$ 1,089
7	Price/Book	0.93​	1.0​
8	No of Shares	397​	N/A
9	Share Price	$ 1.705	N/A
10	Cash Revenue FY17	$ 224	$ 25	Estimated gross rental income
11	Cash Revenue 2023	$ 445	$ 30	Assuming 3% pa rental increase
12	Cash EBITDA FY17	$ 90	$ 18	Estimated net rental income
13	Cash EBITDA 2023	$ 226	$ 22	Assuming 3% pa rental increase
14	Typical Product/Rent Price Incr.	15%​	3%​
15	Typical Asset Price Incr.	10%​	5%​

Does anybody wish to add to / improve on this comparison, or simply comment on it?

It does make me even more convinced that TFS is a much better investment than housing at the moment.