Ann: Half Year Report - ASX Release, page-22

@madamswer

That is not just good financial theory - it is also good common sense. NTA's, or book "value", are worth what they generate for their owners. Otherwise, all you're buying is a whole bunch of accounting figments.

One thing I don't fully agree with, is the notion that a business paying a dividend that is franked, and that is based on real earnings (think more FCF than "profit"), should only be valued at book, even if the generated return on said book (assuming operating capital is not materially distinct from book value) is only equal to it's "cost of capital" (or more importantly, to my way of thinking, to the investors desired rate of return).

That to me, would be akin to placing zero value on the franking credits being distributed.


Btw @madamswer, are you currently a holder or not?