Nice Chart !, page-92

In response to the above comments, I did not state that EPS will be 14% i believe estimates of 20% will be very conservative, I just put together a bunch of numbers to show why different business models should trade on different P/Es regardless of what their forecast growth is due to their return on equity on the equity invested, returns on incremental equity and how much equity is required to be invested back into the business.

OFX ROE is massive, the business requires requires very little capital to be invested back into the business and yet it is able to grow earnings strongly indicating that they are able to achieve increasing returns on incremental but even more than that the business requires so little capital to grow earnings that it could pay out almost all its earnings as dividends and still achieve strong growth rates.

The key risk with OFX has always been the low barriers to entry but i feel like its a crucial period in the life of the business. What everyone is fearing is the death of the business model due to the risk of FX broking, however if OFX are able to secure an alternative bank (which i believe they will) this then creates a barrier to entry, only those companies with high quality reputations will be able to secure a banking partner which will protect OFX into the future. Furthermore the industry may see consolidation given the smaller players may not be able to implement the same controls that a big player like OFX would.

These are just my thoughts, please DYOR.