I understand re the debt
But when valuing the equity you need to take into account the net debt on the balance sheet. If company A and company B have exactly same revenue, operating profit and operational characteristics but A has no debt and B has loads, then the value of the equity will be much greater in A, because B has to service the debt thereby reducing annual net profit and pay it back therefore can’t retain surpluses like A. Plus, perceived risk in having a large debt load raises the risk premium required to hold it.
talking of a p/rod 1 is totally misleading. Market cap is $180m but debt is capital employed in business and has to be paid off, and that is 400m plus. Add the respective capital employed positions of 9 and 7 and divide by the appropriate NET profit and you getter a comparable multiple
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Last
17.0¢ |
Change
-0.005(2.86%) |
Mkt cap ! $261.6M |
Open | High | Low | Value | Volume |
18.0¢ | 18.0¢ | 17.0¢ | $204.5K | 1.174M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
8 | 248751 | 17.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
18.0¢ | 629773 | 17 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
8 | 248751 | 0.170 |
6 | 466000 | 0.165 |
9 | 591514 | 0.160 |
5 | 593000 | 0.155 |
6 | 272040 | 0.150 |
Price($) | Vol. | No. |
---|---|---|
0.180 | 618732 | 16 |
0.185 | 403888 | 10 |
0.190 | 703189 | 14 |
0.195 | 214794 | 9 |
0.200 | 456088 | 13 |
Last trade - 16.10pm 19/06/2024 (20 minute delay) ? |
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