GRB 8.16% 5.3¢ gage roads brewing co limited

Some interesting ratios for Little World Beverages to use a...

  1. 3,953 Posts.
    Some interesting ratios for Little World Beverages to use a model for GRB:

    ROIC Margin:
    2006 = 23.56%
    2007 = 12.23%
    2008 = 9.58%
    2009 = 12.20%
    2010 = 17.01%
    2011 = 18.27%
    2012 = 15.82%

    EBITDA Margin:
    2006 = 18.86%
    2007 = 17.59%
    2008 = 18.52%
    2009 = 21.48%
    2010 = 23.25%
    2011 = 24.08%
    2012 = 23.89%

    EPS
    2006 = 6.34
    2007 = 5.05
    2008 = 6.08
    2009 = 7.67
    2010 = 11.48
    2011 = 14.40
    2012 = 17.90

    Cash conversion cycle hasn't really changed over the 7 years so where is the scale? They say EPS growth is what Mr market is looking for which in turn drives the share price but I like using low EV/EBITDA multiples or EV/FCF multiples. Maybe I'm looking through the wrong valuation lens and not placing enough value on EPS growth. Using this model opens up a lot of potential investments with regards to earlier investment purchase prices. Will think some more but none the less very very interesting investment proposition.

    Please don't take me seriously there are more qualified people to listen too and I have absolutely no idea what I am doing!
 
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