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.
Please explain valuation, page-91
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Last
$41.01 |
Change
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Mkt cap ! $3.330B | |||
| Open | High | Low | Value | Volume |
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Change
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