CGC costa group holdings limited

Costa Group: Valuations

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    NPAT for H1 CY2019 was ~$41m. Now the second half of the year might only be about $10m NPAT due to the skewed earnings profile. So that would be ~ $50m in NPAT for the 2019 calendar year.

    If we came in at $50m NPAT for 2019 CY, for a market cap of $1 billion ($3.20) that is a PE ratio of 20. For a PE ratio of 20 to be fair value (at a PEG ratio of 1), we would want to see earnings growing by 20% in CY20....

    Thus, if you don't think earnings will grow by 20% or more in CY20, than this still looks overvalued on current performance.
 
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