Ann: Investor Day 2017 presentation, page-119

Holy smoke! Before yesterday's open when i read my estimates from last week closely matched WOR's HY result i expected the SP to fall. Instead it jumped 7% after an intra-day high of 8.5%!

The report states the sectors WOR focuses on are 'improving' and their backlog has increased. UK IS has been a success and fits with WOR's new strategy. Overall i found the report to be cautiously optimistic esp re the 'medium term'. 2H will be stronger and I've revised my figures slightly.

But i can't see how Mr Mkt is willing to pay an EV ratio of almost 14x! Goodwill continues to be the dominant asset and WOR's net debt is 771m.

I am able to get my forecasts re future earnings right... but clearly my reckoning on what the stk is worth differs considerably from that of the mkt. Is DAR the main influence?

EV/EBITDA = 273 x 15.20 + debt/EBITDA (FY) = 4920/362 = 13.6x. Compare this with WOR's purchase of IS at 8.9x. Huge difference.

Plus how stable is the world economy? Currently its growing at 2.5-3% but that's on the back of debt which has doubled since the GFC. Just like Sydney housing i feel WOR is overpriced. The former has finally started to drop. Will WOR follow suit?

Big vols yesterday. I wonder of any readers sold and took profits?