PayGroup (ASX:PYG): the best kept secret in human capital management, page-7

I will do calculations for $1.50 share price below:

For PYG share price to reach $1.50 at a PE ratio of 15 they will need net profit of 11.5m.
Using a 15% margin and working back, this means PYG will need approx 77m annual revenue.

That is an increase of 108% on FY22 earnings guidance.
To reach the $1.50 goal by end of FY25 this is 36% revenue growth per financial year

Historically PYG year on year revenue growth ranges between 55-136%. This revenue growth includes acquisitions that are no longer a strategy for management. But I think 36% revenue growth per year is still achievable without acquisitions.

Also note that this does not take into account margin enhancement that management are now focusing on. This would create even more upside.


Summary: $1.50 is very achievable by 2025 and if current momentum continues, share price will likely be much higher than this.