REH moat, page-103

"You can pick your valuation PER, PB ratio, Dividend yield, DCF Reece easily gets into all these categories."

I don't have a DCF valuation, but on near-term (FY2018) point valuation multiples [*], the stock looks anything but cheap to me:

P/E = 20.7x
EV/EBITDA = 12.1x
DY = 2.2%

Price to Book Value = 4.2x


"The only problem is volume, if Reece doesn't have enough volume then it can get into S&P/ASX 300, let alone 100! therefore no broker coverage. no funds will buy into this company. But they will realise sooner or later anyway."

As for "no funds buying into this company", REH has numerous long-term institutional investors on its share register (which, along with the Wilson family's substantial holdings which never trade, is why trade in the stock is so liquid).

Besides, how is the fundamental value of the business dependent on whether or not brokers cover the stock, whether or not it gets included in any benchmark index, or whether or not "funds" own it or not?


[*] Assuming 10% NPAT growth in FY2018