7 replies to this topic

[Targeter]

OK now I understand. I knew I was missing something ...

 

A valuation textbook would give a formula for Economic Value, but in the end you have to decide what inputs go into that formula, and of course the trick is to decide objectively ...

Edited by Targeter, 07 November 2017 - 10:20 AM.

[Bullhunter]

I'm not too familiar with "Economic Value" in the way you mention. Is it a publication perhaps?

It's a fair value calculation which takes into account  the after tax dividends versus the expected real return from an investment above a risk free rate.

[Targeter]

I'm not too familiar with "Economic Value" in the way you mention. Is it a publication perhaps?

[Bullhunter]

Quite some pull back since late Jan 2017, makes one feel there is something out there i am missing and possibly only known by a select "few"...... However I will be watching this one with some vigor.

See Economic Value for an update on Ansys

[Bullhunter]

Quite some pull back since late Jan 2017, makes one feel there is something out there i am missing and possibly only known by a select "few"...... However I will be watching this one with some vigor.

Investec has been selling.

[LiveInExcess]

Quite some pull back since late Jan 2017, makes one feel there is something out there i am missing and possibly only known by a select "few"...... However I will be watching this one with some vigor.

[Bullhunter]

Bargain? The company in its finals to 31 March 2017 said in the Outlook section, "Looking at 2018, we anticipate a moderation to the exceptional growth experienced in 2017".

 

But that exceptional growth was: Revenue up by 70%, EBITDA up by 164%, PAT up by 239 %, HEPS up by 203%, EPS also up by 203% and Tangible Net Asset Value up by 86%.  

 

So even a moderation should be very impressive indeed. 

 

Also impressive is the low PE and PB (price to book) that currently prevail. On the current price of 96c, the PE is 6.53 and the PB is 1.64. 

 

The last 5 years PEs and PBs including the above are, in chronological order:- 

 

PE --- minus 9.50, 9.23, 14.34, 15.51 and 6.53 

 

PB --- 2.58, 2.37, 1.63, 1.58 and 1.64. 

 

The answer to my question, then is Yes, but perhaps a more appropriate term is "undiscovered gem."

Back at the juicy PE level today.

[Targeter]

Bargain? The company in its finals to 31 March 2017 said in the Outlook section, "Looking at 2018, we anticipate a moderation to the exceptional growth experienced in 2017".

 

But that exceptional growth was: Revenue up by 70%, EBITDA up by 164%, PAT up by 239 %, HEPS up by 203%, EPS also up by 203% and Tangible Net Asset Value up by 86%.  

 

So even a moderation should be very impressive indeed. 

 

Also impressive is the low PE and PB (price to book) that currently prevail. On the current price of 96c, the PE is 6.53 and the PB is 1.64. 

 

The last 5 years PEs and PBs including the above are, in chronological order:- 

 

PE --- minus 9.50, 9.23, 14.34, 15.51 and 6.53 

 

PB --- 2.58, 2.37, 1.63, 1.58 and 1.64. 

 

The answer to my question, then is Yes, but perhaps a more appropriate term is "undiscovered gem."

Edited by Targeter, 21 September 2017 - 02:01 PM.