Ann: Preliminary Announcement of Annual Results 2018, page-24

The collapse in the share price over the past 3 months has left the stock trading on a Price-to-Book of around 0.55 and on a trailing FY2018 P/E of 6x.

Based on some forecasts that I have seen of a 10% to 15% fall in EPS in the current year to account for the front-book margin pressure flagged at the full-year result and the near-term dilution from the Virgin Money acquisition, the P/E is less than 7x

Even if one allows for a significant 25% fall in EPS , it still results in a P/E of around 8.0x only.

Sure, there is a lot of uncertainty surrounding this company, from the macroeconomic impacts of whatever form Brexit might take, to the execution risk on the Virgin Money acquisition.

But that, I think, has been largely factored into the current valuation of CYB stock

Accordingly, I have been buying the stock in recent weeks (with due cognisance, of course, that some sticker shock around Brexit developments might well continue to whipsaw the stock price around in the months ahead.)