Valuation.
Putting aside my personal opinion of Karantzis’s character. My take on this is:
The last 3 Qtr’s have shown strong growth, particularly the last 2. If this momentum keeps on this trajectory over the next 2/3 Qtr’s the growth is absolutely confirmed. I presume the revenue is mostly from Europe, a little from the UK. You can assume it’s only really scratching the surface so plenty of growth in their home market.
They haven’t entered The US yet or Asia or South America so there’s huge growth opportunities internationally. I think this gives argument to a substantial P/E ratio. Looking forward based on just the local growth, if confirmed it could throw off between €40-60m profit next year. EPS would be approx € 36- 55 cents based on 110m shares. You then apply a P/E of 50 and you get a share price of €18- €27
AUD$ 29.50 - $44.32
In the old $2.95- $4.43 per share.
