Forum Topics CCA CCA CCA valuation

Pinned valuation:

Added 2 years ago
Justification

With $8m+ of New Zealand credit union customers onboarding through FY25, CCA should inflect quite strongly into statutory profitability. I am forecasting $3-4m PBT, though admittedly how smoothly customers onboard and card activations ramp up, plus the potential for higher than expected investment in operating expenses means it is a moving target.

Nonetheless, taking the midpoint $3.5m and applying a 20x multiple supported by further growth in FY26 gives a valuation of roughly 11c.

secondtake88
Added 2 years ago

Hi Wini, I agree with your comments however I'm more optimistic about where PBT will land.

Based on NZ card spending being up significantly, SE Asian rev, US rev kicking in as well & a $15 - $16m cost base.

Also as there are some $48m in accumulated losses the multiple might be a little higher.

I'm calling PBT to be $8m. Thus a share price north of 20c exiting this FY.

11