The latest guidance given today of $205-215m in NPAT puts the company on a forward earnings multiple of approx. 17.5x. This is not cheap for a capex hungry business with ongoing acquisition implementation risk and a maturing industry profile.
Vocus was not fair valued and is now trading cheaply. It was a very expensive stock which has now corrected to more realistic valuations. Given this and the fact that any catalyst for further proof they can digest their acquisitions is at least 6 months away, it means this is a long term buy at best.
VOC Price at posting:
$4.59 Sentiment: None Disclosure: Not Held
