AMA 1.52% 6.5¢ ama group limited

where is the upside?, page-3

  1. 1,416 Posts.
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    ROE is high because gearing is still high.

    A focus on ROE should not be used when a company has high gearning, instead focus on enterprise value.

    Yes AMA is attractive, but not because of its high ROE. Overtime as the company repays debt current ROE will decline significantly.
 
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