What about the rest of PAC?, page-7

Here are some other back of the envelope calculations based on revising underlying businesses based on the fact that GQG was so undervalued on the books.

In terms of the breakdown of revenues and earnings of PAC’s boutique investments, I wanted to demonstrate how undervalued I think PAC’s boutique’s are. The valuation method is overly conservative and represents what would potentially be a great arbitrage opportunity.

Current Net Assets stand at just under $8 per share.

This includes the following valuation:

	Boutique	Financial Report Valuation	Lost’s Valuation	Difference (arbitrage value)
1	GQG	$115,275,000 (Note 18f) Values GQG at $2.305B	Range $6.2B and $7.5B Based on 5% $310M to $375M Based on 4% $248M to $300M	$133M to $260M Between $2.62 and $5.11 per share is missing from Net Assets of $8 per share
2	PennyBacker	$5,672,000 Note 18f Values PennyBacker at $34.376M	Company NPAT is $4.604M This is a PE Ratio of 7.47 (seriously?) Valuation at Lost’s 15 times earnings (this is a discount to current US REIT valuation of 19.73 times) Revised valuation is $69.06M*.165 = $11.395M	$5.723M based on 15 times PE Ratio This is 11c per share (every little bit counts)
3	VPC – VPC and VPC Holdco	PAC’s value 2021 $75.651M Note 22(b) Full VPC value - $302.6M PAC’s value 2020 $81.549M Full VPC value - $326.2M See Table 1 below – revenue fell 5.45%, however NPAT almost doubled increasing by 93.7%	2021 PE Ratio is 11.3 2020 PE Ratio is 23.59 The valuation appears to be based on what PAC earnt, not what was generated by the VPC business. Valuation should be a PE Ratio of 20, given the strong growth coming up this year. 20 * $26.781M NPAT VPC Total value is $535.62M PAC’s share is $133.37M based on 20 times PE Ratio	$133.37M - $75.651M = 57.719M valuation missing This is $1.14 per share

Above revaluations increase share price by between $3.87 and $6.36 (missing from Net Assets of $8 per share).

*Table 1

Best of Luck
Lost