Valuation (Last Updated: 30/10/2008) Our $10.30 Fair Value...

Valuation (Last Updated: 30/10/2008)
Our $10.30 Fair Value estimate is based on the expectation of 10% pa revenue growth over the next 5 years with slight margin improvement through greater contributions from more profitable US businesses. EPS growth around 11% pa is likely over this time.

Our valuation incorporates both discounted cash flow and earnings multiple analysis. The cost of capital used in our DCF is 10.5% and this is comfortably covered by the return on capital of 13%. We assign a Moat Rating of 'Narrow' to this stock, indicating that the company's return on capital will exceed the cost of capital for at least the next 10 years. Given the prospects, the stock should trade on a forward PE multiple around 14 times over the next 5 years.

good call guys!!!

lol

what a joke these guys are, hey?