with a $3.2 billion value, I would be looking for an npat of $160m, which is still a 20 times PE and means that I still expecting significant growth in profit.
You are right in that revenue adds incrementally more to profit as it grows. This is why profit grew from about $15m to $38m yoy 22 to 23. A 160% growth. It is not reasonable to assume this % growth to continue. It may be reasonable to assume for the $ growth to continue for a number of years.
This means about $60m for ye June 24. $85m for ye 25 $110m for ye 26. I would have to assume that revenue is adding at a rate so much more to profit that it will be 50% higher in 26 to justify the current price, and even then I am paying 2 years early, and still require it to be a growth stock after 26.
If I was investing this it would have to closer to $20 than $40, I see one broker has a value of $26. Maybe that broker is right. And they have more info and skill than I do.
with a $3.2 billion value, I would be looking for an npat of...
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Last
$41.68 |
Change
0.250(0.60%) |
Mkt cap ! $3.385B | |||
| Open | High | Low | Value | Volume |
| $41.62 | $42.26 | $41.45 | $7.025M | 167.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 802 | $41.67 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $41.70 | 4390 | 4 |
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| Last trade - 16.10pm 08/05/2024 (20 minute delay) ? |
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Last
$41.81 |
Change
0.250 ( 0.76 %) |
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| Open | High | Low | Volume | ||
| $41.56 | $42.25 | $41.56 | 16340 | ||
| Last updated 15.59pm 08/05/2024 ? | |||||
| HUB (ASX) Chart |