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News: AMP Australia's AMP posts 53% rise in annual profit, page-28

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10/02/22

16:41

Post #: 59490570
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Originally posted by madamswer: ↑

The result certainly looks like what the doctor ordered

But just be careful of capitalising AMP Banks latest Reported Underlying NPAT number, because it includes release of a $26m credit loss provision which was raised during the onset of Covid.

So the $153m NPAT number for AMP Banks should really be considered to be $127m on a normalised basis.

But even eliminating that hollow-log, is still a very good result from AMP Bank.

I think it could be worth $1.8bn.

And more importantly, a good result from the jewel in the crown, AMP Capital, which I think is worth $3.0bn to $3.5bn

So, those two alone are worth around $5.0bn

This compares to the current Enterprise Value of the group of $4.8bn ($3.3bn Market Cap and $1.5bn Corporate Debt)

Which means that the Australian and New Zealand Wealth Management businesses (which, net of all corporate overheads report, current NPAT of ~$50m pa) are being implicitly valued between minus $200m and $750m

If one placed a modest 12x P/E multiple on that $50m number, and combined it with the ~$5.0bn value for AMP Bank and AMP Capital, you get a target price of $1.30 for the stock:

View attachment 4080716

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you did well now didn't you!

well done!

are you out?

AMP Price at posting: $1.07 Sentiment: Buy Disclosure: Held
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0 Great analysis

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(20min delay)
Last $1.17		Change 0.028(2.41%)		Mkt cap ! $3.025B

Open	High	Low	Value	Volume
$1.14	$1.17	$1.14	$4.869M	4.216M

Buyers (Bids)

No.	Vol.	Price($)
57	270761	$1.17

Sellers (Offers)

Price($)	Vol.	No.
$1.17	369984	34

View Market Depth

No.	Vol.	Price($)
73	328343	1.160
26	334893	1.155
27	514082	1.150
12	214204	1.145
12	628282	1.140

Price($)	Vol.	No.
1.165	146050	30
1.170	695709	41
1.175	278563	20
1.180	340687	29
1.185	612950	10

Last trade - 13.51pm 31/07/2024 (20 minute delay)

AMP (ASX) Chart