Up 100% in a week, milford must be very pleased
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Up 100% in a week, milford must be very pleased
But mousie at $2.08 it is trading on a Price/Sales of only 10.
$27m on the same ratio is $2.70 so plenty of upside,
and then of course the have yet to revise their forecast upwards yet, which if you read between the lines is obviously what they mean by
Best WishesQuote:
The Wynyard board will continue to review the 2014 and 2015 business plan and targets through the first quarter this year
Paper Tiger
Disc: Have shares in WYN - this post may contain traces of sarcasm.
Great Scott!!! When I think I've missed the boat on this one it shoots up even more?!?!?!?
I see Westpac selling down. Why do they do that when it's such early days ?
That thing I am always on about gives an Enterprise Value of $189 (your calculation assuming a 60% growth rate .... yes?)
So Market Cap would be the $189 less debt of say $35m - $154m or $1,50 share
So on this thing on I am always on about WYN has an EV of about 10 times revenue
Kellblog's bankers methodology and derived formula is based on the US. After reviewing how things are going in NZ and because that thing I am always going on about always seem to undervalue the things like DIL and GEO (haven't checked SNK) and now WYN and listening to gurus on this site who think 10 times sales is the lwast these things should be valued at there is obviously a need for a NZ version of this calculation
So after a bit of research and modelling I have come up with a new version just for NZ and Australia. It essentially allows for NZ being the best economy in the world at the moment and takes into account the more cleverness of NZ business owners along with the concept that the more debt a company the better.
It is now EV= (Sales Growth + 1) * 1.4 (NZ Innovation Success factor) * 1.2 (NZ great place) * Forecast Revenues
SO WYN Enterprise value is (6+!)*1.4*1.2*27 = $317m which less debt of $35m gives Mcap of $282m and shareprice of $2.70
DIL comes out at about $6.60 on this basis so must be about right eh
Good one eh Robbo
Sounds silly eh but as we live in a silly world and because this time things are different one does need to be flexible and open minded and change valuation methodologies to allow for what is going on