Like previously posted my calculations are as below:
Comparing AFJ & GEM
AFJ $130 Million market cap GEM $1.3 Billion market cap
AFJ $81 million revenue NPAT $8.3 million GEM $275 million revenue $NPAT $31 million
AFJ 52 child care centres (recently increased to 68 not includes in figures) GEM 252 child care centres
AFJ $5 million debt GEM $120 million debt
AFJ current PE 15 GEM current PE 42
Based on the above numbers and what the market is currently valuing GEM at then if we apply the same PE to AFJ as they have the same business model and potential then AFJ should be trading at around $348 million market cap or $3.91 per share.
As you can see the upside potential in AFJ is massive when compared to its piers in the same industry.
AFJ Price at posting:
$1.38 Sentiment: Buy Disclosure: Held