wellard group the bal of livestock, page-8

Some Wellard analysis:

BENCHMARKS
Looked at Graincorp, Costa and Murray Goulburn.
PROFITABILITY
Wellard EBIT to Sales is 9% versus others in range 2 to 10%.
Wellard is a good performer.
ASSET MANAGEMENT
Wellard return on assets is 14% versus others in the range 3 to 14%.
Wellard is a good performer.
PRICING
Wellard is similar in size to Costa and much smaller than Murray Goulburn and Graincorp.
Wellard size, EBIT margins and Asset mamangemnt almost identical to Costa.
Not surprisingly, Wellard being priced identical to Costa at the bottom of the range and more expensive than Costa at the top of the range.
Also priced identical to Murray Goulburn at the bottom of the range.
Much cheaper than Grain Corp but Graincorp is too asset intensive for a meaningful comparison.
SUMMARY
This is a good business.
Sold at no discount relative to peers at the bottom of the range and a premium to peers at the top of the range.
Costa listed at a discount and MG at a very slight premium.
Based on Wellards indicative pricing and history of Costa and MG listings will be very surpsied if there is a stag on this IPO.

Everyones thoughts ?