Fair & Under Value Opportunities

Discussion in 'Share Investing Strategies, Theories & Education' started by anthwilcox, 28th Jun, 2010.

Join Australia's most dynamic and respected property investment community
  1. anthwilcox

    anthwilcox New Member

    Joined:
    1st Jul, 2015
    Posts:
    3
    Location:
    QLD
    Looking for current opportunities within the Australian Market. A place to submit and garner ideas for the benefit of those who participate.
     
    anthwilcox, 28th Jun, 2010
    #1
  2. anthwilcox

    anthwilcox New Member

    Joined:
    1st Jul, 2015
    Posts:
    3
    Location:
    QLD
    SRV

    To kick off discussion, I'll put forward Servcorp (SRV) which has had a 5 year mean return on equity of 22.7%. The current equity per share of SRV is around $1.84, which puts its Bond valuation ([ROE/required Return]*Equity per share) at around $2.80 @ a required rate of 15%.

    This bond style valuation does not take into account any growth from retained profits.

    I think this business has the potential to be much larger in 10 years time than it is today.

    Your thoughts are welcome...
     
    anthwilcox, 28th Jun, 2010
    #2