So you think FMG is not trading at a discount because of it's debt?
Based on you analogy, FMG is like a house that has valued at $3Million, that has cleared its debt down to only $500K, but its equity is still being valued as if they still owed $2.5Million.
Over the last 5 years or so, FMG's enterprise value has grown as it opened and ramped up mines, made further discoveries for future development, added rail and port capacity, bought ships etc etc, and it's equity position has grown as it cleared debt.
FMG is sitting on a forward price earnings of about 6, this is a massive discount, partly because of it's debt and partly because of fear about a iron ore decline, as the debt reduces and discount will disappear.
So you think FMG is not trading at a discount because of it's...
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Last
$19.73 |
Change
0.760(4.01%) |
Mkt cap ! $60.74B | |||
| Open | High | Low | Value | Volume |
| $19.11 | $19.90 | $19.11 | $207.2M | 10.61M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 55717 | $19.73 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $19.76 | 15000 | 1 |
View Market Depth
| Last trade - 16.10pm 10/10/2024 (20 minute delay) ? |
| FMG (ASX) Chart |