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happy668

482 Posts.

35

09/11/15

21:51

Post #: 16356871
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Originally posted by Katavi ↑

Have done some work on IDP.
BENCHMARKS
Used Navitas, G8 and SAI Global in Australia and TAL Education , Grand Canyon Education, Apollo, Nord Anglia and Pearson for USA. I believe most of the above companies have been used as comparators in broker reports.
PROFITABILITY
EBIT to Sales for IDP is 14% compared with 9 to 12% in Australia and 7 to 26% in USA. IDP is within range.
ASSET MANAGEMENT
IDP is a massive 72% compared with 20 to 33% in Australia and 8 to 24% in USA.
IDP is clearly the most profitable business and amazing.
PRICING
There should be a small discount for size as IDP around a third to sixty percent the size of Australian benchmarks and smaller than all USA benchmarks but surprisingly not much smaller than some of them.
At the top of the range price of $2.65 IDP it is still about 25% cheaper than Australian benchmarks and about 10 percent cheaper than average USA benchmarks .
GS and MB have valuations in the range $2.25 to $2.80 and $2.35 to $2.75 respectively. This compares with bookbuild range of $2.40 to $2.65 I believe.
CONCLUSION
Reckon there is money to be made on this IPO.

WHAT ARE EVERYONES THOUGHTS ON THIS IPO ?

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Agree.
Expected a massive scale back on this one
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