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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Hi Saintex,Yes I think NTA will not be a valuable valuation...
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Last
$4.80 |
Change
0.060(1.27%) |
Mkt cap ! $395.6M |
Open | High | Low | Value | Volume |
$4.77 | $4.87 | $4.74 | $391.0K | 81.43K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 13072 | $4.80 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$4.84 | 18958 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 13072 | 4.800 |
1 | 211 | 4.720 |
1 | 9354 | 4.710 |
3 | 1086 | 4.680 |
1 | 1290 | 4.650 |
Price($) | Vol. | No. |
---|---|---|
4.840 | 18958 | 1 |
4.850 | 3000 | 1 |
4.980 | 212 | 1 |
4.990 | 200 | 1 |
5.000 | 5000 | 1 |
Last trade - 16.10pm 11/07/2024 (20 minute delay) ? |
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CWP (ASX) Chart |