Looking into the past can sometimes tell what the future holds.I wanted to check that GEM was acquirying busineses at 4 x EBIT.How do I do that well I thought I would take the Intangibles from the balance sheet at 31/12/12 $201,814K which includes all business purchased to that date.I then times this by a factor of 25% this equals $50,453K then divide by 2 for 6 months = $25,226K.On top of this they have made purchases since 31/12/12 which should be added on.Well we look at the half year to 30/6/13 and EBIT is only $17,045K.So based on these figures they have been paying 6 x EBIT.Is this the best way to check?
GEM Price at posting:
$3.20 Sentiment: None Disclosure: Not Held
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