Just looking at what profit/dividend I expect... I can't see the current price being fair. I think MQG is significantly undervalued. It is the stock that is most predominant in my portfolio (followed by ANZ), so I won't be adding to my collection... but, if I was underweight in it, I would be at this price.
If they maintain dividends, as they have for the last 2 years, it is a 6% dividend yield.
This is not 'outstanding'... but the capital gain potential of MQG is outstanding.
They didn't sell assets through the GFC (well, perhaps spun a satellite out? Not sure. At any rate), they purchased assets... and they still are (Royal Adelaide Hospital partnership, USA wealth assets, are two recent ones that come to mind).
Even though there core businesses aren't as profitable anymore... we *will* see a return to the same level of profitability --> probably with a slower long-term growth rate than was expected.... but, actual profitability, $ for $, will return -> even on a per share basis.
From ComSec:
EPS(c) PE Growth
Year Ending 30-03-12 327.7 10.0 18.8%
Year Ending 30-03-13 375.3 8.7 14.5%
Expecting growth rate of 19 and 15%....... to give a current year PE ratio of 10, and a next year PE ratio of 8.7.
Yes, a nextyear PE ratio of 8.7, with a stock that is expected to grow by 14.5% next year.
With an analyst upgrade 60 days ago.
With 10 positive surprises, and 4 negative surprises (since 1998).
With a 1.7 analyst recommendation (1 being the highest, 5 being the lowest). (only 3 analysts, but 2 of them have it as a strong buy).
Yea, I see mostly good news.