Growth expectations is relevant to justify a lower dividend yield today or a high(er) PE to in turn justify a higher share price today.
If cash flow isn't expected to increase in the future, you have a no-growth or negative-growth asset, and that asset needs to be priced as such - which means a high dividend yield today or an absurdly low PE, and that's exactly how the market prices FMG, today.
Like how is FMG going to get significantly more cash flow (growth) from here (in the next 5 years etc), it's the iron ore price, only.
You can go into all the hydrogen and copper stories etc and they are great initiatives, but a 50% decline in the iron ore price in 5 years just makes those growth opportunities look like a rounding error.
Iron ore price, page-30861
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Last
$19.55 |
Change
0.050(0.26%) |
Mkt cap ! $60.19B | |||
| Open | High | Low | Value | Volume |
| $19.98 | $20.30 | $19.51 | $184.3M | 9.305M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 5 | 2568 | $19.51 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $19.56 | 44282 | 3 |
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| Last trade - 16.10pm 08/11/2024 (20 minute delay) ? |
| FMG (ASX) Chart |