Extracts From Bell Potter Research PTB GROUP The present value...

Extracts From Bell Potter Research

PTB GROUP

The present value of AUD1,000 (PV1000) invested five
years ago in PTB Group is $A3,951, including a capital
gain of $A1,353 and dividend reinvested of $A1,598.

5 years Multiplier in AUD = 3.951x

• Compound Annual Growth Rate (CAGR) in AUD = 31.6%

Undervaluation:
* Price/Earnings of 9.2 versus sector average of 47.2 and
market average of 20.7. We estimate the shares are
trading at a current year P/E of 9 and a forward year P/E
of 7.3.
* The earnings yield of 10.9% is 4.0 times the 10-year bond
yield of 2.71%.
* Price/Sales of 0.7 versus sector average of 1.2 and
market average of 1.9. We estimate the shares are
trading at a current year Price/Sales of 0.7 and a
forward year Price/Sales of 0.6.
* The Price to Book of 0.8 lower than average of 4.0 for the
Capital goods sector and 2.8 for the Total Australian
Market. We estimate the shares are trading at a current
year Price to Book of 0.7 and a forward year Price to
Book of 0.7.
* The P/E of 9.2 multiplied by the P/NTA of 0.8 is 7.4. Being
less than the Benjamin Graham benchmark of 22.5 the
stock appears undervalued.
* The Q Ratio, defined by James Tobin as MCap divided
by Total Assets, is 0.4. Compared with the rest of the
market the stock is undervalued and ranks in the top
quartile of stocks by value of Q Ratio.
* Dividend Yield of 9% is in Top 6% rank in market

* The average annual compound return on the share
price in the last 5 years was 31.6%, exceeding the
average annual compound return on the All Ordinaries
Index of 3.4%.