virtus health ipo & vei comparable valuation , page-4

I can't see how Bell Potters suggestion of 2-3c dividend for the second half stacks up. My estimate for NPAT for 2nd half is around $6.4m (giving FY $11.3m).

They still have to repay loans to the banks at $4.38m/6 months which only leaves around 1.2cps available for dividends, unless they dip into some of the funds raised in the recent issue, which would not be wise.

On this basis, I reckon the best we can look forward to is a dividend of 1cps.

If my estimate of NPAT comes to pass, earnings under the new capital structure would be around 7cps and at a P/E of 10, value would be 70cps.

I would love to be proven wrong, but at the moment I can't see it. I see long term value here but it may be a few years coming.