Hi Saintex,
Yes I think NTA will not be a valuable valuation measure in and of itself. As a property developer nearly all of the the company's assets are property "stock", i.e. land at cost and capitalised development costs. The developer then obviously seeks to sell that "stock" at a healthy margin, historically 40%+ for CWP but a bit under 30% in recent years. This also partly explains your comments around the declining EBIT margin, noting that the business has a fairly fixed operating cost base.
NPAT would be a reasonably reliable proxy for the underlying cash earnings of the business imo, with the only caveat being that a significant portion of profits must be retained to fund future land purchases. You can then apply a suitable multiple of your choosing, keeping in mind that the market has generally not had high regard for ASX resi property developers.
Cheers
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Last
$4.90 |
Change
0.020(0.41%) |
Mkt cap ! $403.8M |
Open | High | Low | Value | Volume |
$4.86 | $4.94 | $4.85 | $378.0K | 77.26K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 10902 | $4.85 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$4.99 | 65 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 10902 | 4.850 |
1 | 10502 | 4.760 |
2 | 606 | 4.750 |
2 | 21000 | 4.650 |
2 | 1214 | 4.640 |
Price($) | Vol. | No. |
---|---|---|
4.990 | 65 | 1 |
5.000 | 13487 | 7 |
5.010 | 101 | 1 |
5.050 | 7846 | 2 |
5.090 | 200 | 1 |
Last trade - 16.10pm 06/08/2024 (20 minute delay) ? |
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CWP (ASX) Chart |