Ann: Trading Update and Revised FY2019 Guidance, page-11

"USER=167466]@madamswer[/USER] not that you are saying otherwise . . . I always look at the property earnings as being a sort of windfall, or something to add to the balance sheet in a way, and not part of the business that should command a multiple of be part of underlying earnings. I'm fairly sure any underlying earnings would leave property out, but any inclusive earnings might also include the profit or loss on the divestments as well. Complicated."


I'm not sure I share your approach to valuing BLD's Property development earnings at essentially zero.

Just because the contribution from Property is almost impossible to forecast, doesn't mean it is not of nay value.

It would certainly be easy to justify capitalising the following stream of EBIT at a multiple greater than 1.0 times.


Personally, I'd readily pay 5 times trailing 5-year average EBIT, which I think would capture the impact of a full cycle, for this division.

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