Potentially Significantly Undervalued, page-6

There is $7.1 mil one-off expense associated with the recent acquisitions. This will not be repeated

Codan's FY2021 Net profit before tax is $139Mil, assuming 14% growth as you said, then we are looking at $166 Mil before tax or $116 NPAT.

This equates to EPS of 64c or PE of 16 based on the current share price.

But remember, the acquisitions are only acquired in April so their earnings are not fully accredited to Codan's FY 21 account, and the cost synergies are also not realised.

I expect FY22, the recent acquisitions will add significant earnings to Codan's bottomline and hence current predicted PE of 16 seems to be undervalued based on our conservative assumptions.