DSK 1.60% 92.5¢ dusk group limited

DSK valuation

  1. 2,020 Posts.
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    Someone please tell me if I am doing something wrong with my calculations.

    Expected EBIT is $40m top end of recent guidance. Expected NPAT (70% of EBIT from previous reports) = $28m. Even at a near all time high price of $3.92, the market cap is hovering around 244m. This means the stock is trading at a PE of 8.7, Is that right? Are there some unlisted stocks that are going to come out the woodwork? I just can't wrap my head around this. A PE of 8.7 implies the market is expecting lower NPAT figures for FY22 over FY21. Is all this common knowledge?
    So currently the stock is priced for a reduction in revenue/profit for FY22 even though there is a good chance that with more stores opening the revenue/profit may grow. I understand that covid increased demand. I take it the market believes this increased demand will prove to be temporary?
 
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