No one is disputing the quality of Hub24 & Netwealth but you...

No one is disputing the quality of Hub24 & Netwealth but you would be assuming some pretty aggressive growth rates.

One forecast for 2022 is 46 cents a share & if you assume 30% for the next 5 years, 20 % for the next 5 years and level of at 10% for the next 4 years, in those 15 periods discounted at 10% you get around $17. I use 15 periods as a PE ratio of 15 is considered reasonably fair value.

But if you change the growth rates to 15% 10% & 5% its around $7.4 but these growth rates are fairly conservative I believe. This would have made the March 2020 price for this stock a steal which we can now see, it was. Covid really was a massive opportunity

Mind you I think Hub has the potential so smash some of my assumed growth rates in the near future. It wouldn't surprise me if they achieve a 50% plus growth in EPS from one period to another more than once

But at these prices I think the boat has been missed & if you buy in now I believe you have arrived very late to the party.

		discount	10%
1	2022	$0.45	growth
2	1	$0.59	30%
3	2	$0.76	30%
4	3	$0.99	30%
5	4	$1.29	30%
6	5	$1.67	30%
7	6	$2.00	20%
8	7	$2.41	20%
9	8	$2.89	20%
10	9	$3.46	20%
11	10	$4.16	20%
12	11	$4.57	10%
13	12	$5.03	10%
14	13	$5.53	10%
15	14	$6.09	10%
16		$17.02

		discount	10%
1	2022	$0.45	growth
2	1	$0.52	15%
3	2	$0.60	15%
4	3	$0.68	15%
5	4	$0.79	15%
6	5	$0.91	15%
7	6	$1.00	10%
8	7	$1.10	10%
9	8	$1.20	10%
10	9	$1.33	10%
11	10	$1.46	10%
12	11	$1.53	5%
13	12	$1.61	5%
14	13	$1.69	5%
15	14	$1.77	5%
16		$7.39