PWR Holdings Limited

ASX:PWH

PWR Holdings Limited

ASX:PWH
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$8.85 (+2.1%)
Last close price
#154
Rank
7
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Reports (7) My Report Forum Investors
Forum Topics PWH PWH PWH valuation

Pinned valuation:

Valuation deleted
Valueinvestor0909
Added 8 months ago

I have put together my thoughts about the current situation: https://www.growthgauge.com.au/p/pwr-holdings-asxpwh-business-overview

19
Solvetheriddle
Added 8 months ago

@Valueinvestor0909 , you have covered all the issues here. i presented this to my ASA group a couple of weeks ago (requested by the group). My conclusion is much like yours, but I'm prepared to wait for signs of stabilisation and a turnaround before adding. hard to see any relief in August given the timing, but it's possible. its in the sin bin, but the core MS/A&D stories remain solid, so there is a reasonable chance of a comeback. could move quickly on positives.

this market loves a positive trend, not much else


have a holding position and waiting, watching

21
Rocket6
Added 8 months ago

This is where different valuations are fascinating. I have fiddled (and then some) with a quick and dirty DCF tonight and I get an intrinsic value around 300m based on cash flow growth of 10-15%. I had a fiddle with a revenue projection and got something similar.

I will get more in the weeds at some point this week and see where I land. Has anyone else had a crack at a valuation of PWH of late? Would be interested in where others land.

Using a more traditional revenue multiple, the trailing revenue multiple is around 5x -- and management have guided for revenue to actually decline further on FY24 revenue (by 5-10% -- was 63m in H1). Their forward P/E is around 42x. Certainly not cheap, and that is after the share price decline of more than 40% over the previous 12 months.

Granted high-quality stocks on the ASX will command a premium, and no doubt this is one of them.

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