AUB 1.13% $31.52 aub group limited

Ann: Change in substantial holding from CGF, page-4

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  1. 7,936 Posts.
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    @Barkston ,

    Nice to hear from a fellow AUB shareholder.

    But please don't take my presence here as an explicit endorsement to buy AUB at current prices.

    When I first bought AUB, in 2008, the company had just reported Net Profit of $14m (EPS of 28c), placing the stock on a 13.5x P/E multiple based on my purchase price at the time.

    I recall at the time feeling that I was paying a reasonably full multiple for what looked to me like being a small cap company that was slightly above-average in quality.

    Over the 9 years that I've own AUB, it's financial performance far exceeded my initial expectations, prompting me to add to my holdings on several occasions over the years.

    I have on no occasion sold any AUB shares.

    Today, the company makes around $40m in NPAT (EPS = 64cps). Accordingly, the stock is currently trading on a P/E of 19.5x which, I think, leaves the stock overvalued.

    I will continue to hold all my shares, despite my sense that the share price will, at best, mark time for a year or two, as the organic earnings growth chews into the lofty valuation multiple.

    [*] If AUB trading on a P/E of ~20x is rich, then it is only eclipsed by its listed peer, SDF, which currently trades on a whopping 24x multiple. A bit crazy, I think.
    Last edited by madamswer: 01/05/17
 
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Last
$31.52
Change
-0.360(1.13%)
Mkt cap ! $3.629B
Open High Low Value Volume
$32.06 $32.06 $31.47 $5.404M 170.9K

Buyers (Bids)

No. Vol. Price($)
2 334 $31.51
 

Sellers (Offers)

Price($) Vol. No.
$31.63 1541 2
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Last trade - 16.10pm 15/11/2024 (20 minute delay) ?
AUB (ASX) Chart
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