Your figures may be a little bit wrong
Quote:
Originally Posted by
noodles
I agree Percy. It is a continuing pattern of upgrades at DPC. Some more colour is given in the RNZ interview.
http://www.radionz.co.nz/national/pr...nings-guidance
But of more interest to me was the details about how the acquisition will be funded. From this I can calculate a normalised pe for FY16 (year ending 31 march 2016)
First some assumptions:
1. DPC get 100% ownership
2. All Convertable notes are converted
Additional Capital raised based on 100% ownership $48mill @25c per share. I included the convertible notes in my eps calculcation. I know this is not technically correct, but they will probably convert at a later date. In any, case, the number of shares on issue should reflect this.
The number of new shares issued = 48Mill/.25c= 192mill shares. Add this to the existing shares and we get 685mill shares
Now the profit. DPC stated here that NPBT for FY16 with 100% ownership is $25mil
https://www.nzx.com/companies/DPC/announcements/253161
While they won't pay full tax that year, I'm going to assume they do to get a true reflection of underlying profit.
So NPAT = 25*(1-.28)= $18mill
This gives me an eps of 2.62c
And a pe of 9.53 (at current share price of .25c)
For me a pe< 10 in a growth company is rare.
DISC: Holding
On the assumption that $25M PBT represents 100% ownership of TUA for the 2015-6 FY then:
there will be 615M shares and $18M of bonds which paid out $1M62 of interest.
That would equate to a tax normalised NPAT of 2.929cps. ($18M/615M)
Convert the $18M of bonds to 72M more shares (is that right?) and you save the $1M62 interest.
That would equate to a tax normalised NPAT of 2.791cps. ($19M17/687M)
Remember that this is based on estimates of future profits and actually results will be different.
Best Wishes
Paper Tiger