AMA 7.58% 6.1¢ ama group limited

I went with 8x as it is the highest observed multiple I have...

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  1. 1,782 Posts.
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    I went with 8x as it is the highest observed multiple I have seen.

    If it were 10x then, by my calcs, this would produce a SP of around $1.32 (because in this scenario the 19m options might be exercised and I have assumed no net increase in shares on issue when future acquisitions are made).

    So from today's SP of $1.04 that represents a holding period return of 27%. How quickly that could be realised, and the risks surrounding its realisation, would determine whether or not it is a worthwhile investment.
 
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