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It’s been a tough couple of weeks for the Plus500 share price – aside from a straightforward AGM announcement yesterday nothing else to report since the strong Q1 trading update in early April.
I have updated some of the figures in the above post based on the closing price today of 551p (down from its recent high of about 700p).
- PE 12.0x (NTM, based on Liberum’s estimates)
- PE 8.7x (run rate basis, same methodology as above)
Note: the Stockopedia PE of 13.3x (forecast rolling 12m) only seems to take the 2014 earnings into account. Given we are in May and there is expected growth for earnings next year this will overstate the PE multiple compared to a true Next Twelve Months basis i.e. 13.3x vs. 12.0x.
The discount to IG has widened considerably as the multiples for IG have hardly changed.
Not sure where else you can buy the growth, margins and cash generation that Plus500 has at this sort of valuation range.
To be in line with IG Group would now require a share price of c. 993p (same methodology as above) - this is now c.80% above the current share price.
