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clock Created with Sketch. 04/11/20
12:29
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Originally posted by dabozza:
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The challenge for TWE is that their growth is massively leveraged to China, and they have little organic / alternative growth coming from elsewhere. So 3% dividend yields in perpetuity with limited growth isn't something people are willing to pay for. A back of the envelope estimate of intrinsic value that I did had TWE at $7 ex China for 3-5 years, despite the amazing brand of Penfolds and the $2bn of assets it puts on their balance sheet. Unfortunately, I think the non-verbal "announcements" will play heavily on TWE for some time, as they have been caught in the geo political crosshairs.
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You're assuming they get no growth in China?
(20min delay)