I am new here so forgive me if I get something wrong.
Management are confident that they will exceed 1HFY21 profit numbers. But wording from management suggests it may not be massive growth. Over the past 2 financial years profit has increased an average of 28% year on year. lets halve this to be conservative (14% profit growth).
SOI= 180.88m
Predicted net profit (using 14% growth) = 103m
I am unsure of what PE ratio is common for CDA so I will use 20.
20 = x / 0.569
x = 11.38
Share price fair value = $11.38
That's an 11% increase on current share price by the end of the financial year when reports are released. New investors may look elsewhere for larger returns. Obviously this is 100% guesswork and my growth margin is likely to low, but I like to look at worst case scenarios when making investment decisions.
Would love to hear others thoughts.
Potentially Significantly Undervalued, page-3
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$12.70 |
Change
0.080(0.63%) |
Mkt cap ! $2.302B | |||
| Open | High | Low | Value | Volume |
| $12.74 | $12.93 | $12.68 | $2.247M | 176.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 47 | $12.68 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $12.70 | 103 | 1 |
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