Humm Valuation - What is Sensible, page-53

Cuscal chases $500m valuation

https://www.theaustralian.com.au/business/dataroom/cuscal-chases-500m-valuation-as-it-aims-to-hit-the-boards/news-story/33fc892a2df0c7d765bbe08761a71628?amp

"Its annual net profit last year $23.4m, growing at 9 per cent between 2018 and 2022, and it has a 9.5 per cent net profit margin"

Cuscal is a bank/payments so not like-for-like comparison to non-banking.

Though 21x trailing earnings seems ambitious for that growth.

But good to see M&A activity starting to pick up.

Just chewing the fat until FY23 - then hoping to see positive momo on NIM & normalised costs, and managing credit losses (expect auditors to push them on credit provisioning which is fine as forecasting not actuals (e.g. FY20 unwound in FY21)) and managing loan book.
FY24 will present similar macro challenges but need to see that mgt starting to execute, especially on NIM & normalised costs.
Low P/B is like low P/S, on BAU it's pure vanity unless converting to FCF. GLTA.