my take on afj, page-9

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.