valuation 4 dollars, page-5

"May make 100mil/annum profit. 6-7x earnings thats 500mil. 250mil shares = $2per share, allowing for brand name discounts"

rubbish!!

Mac made $100m in 1995 on $4.6 bn in assets. It is now 30 x bigger.
It now has $167 bn in assets and makes $1,803 m

the banking wing contributes about 40% Non bank funding wing will contribute 60%

strip out the funds management business and you will lose 20% of the income



reduce earnings by 50%


PE 8

Net Profit = $900 m

$7200

No of shares = 281m

$25.62


check out all the businesses Macquarie is into

Dividends & distributions, 1.0%
Share of net profits of associates, 1.9%
Net interest income, 8.1%
Interest rate products, 1.2%
Commodities products, 4.5%
Foreign exchange products, 3.0%
Equity derivatives products, 13.4%
Other fee and commission income, 2.3%
Financial products & cross border leasing, 1.6%
Banking, lending and securitisation 0.8%
Funds under administration, 1.7%
Brokerage and commissions – retail, 3.3%
Base funds management fees, specialist funds, 7.2%
Base funds management fees, other funds, 3.8%
Performance fees, 4.4%
Income from asset
realisations, 11.2%
Mergers and acquisitions,
advisory and underwriting, 16.8%
Brokerage and commissions – wholesale, 11.1%