Aussie Broadband Intrinsic Value Calculation – Aussie Broadband Shareholders Rejoice as Share Price Increases 21% in Last Quarter Despite Year-Long Loss of 41%.
March 21, 2023
Trending News ☀️
Aussie Broadband ($ASX:ABB) Limited shareholders have been given some respite in the last quarter, despite sustaining a significant 41% loss in their investment if they had purchased shares a year ago. The share price for Aussie Broadband has increased by a staggering 21% in the last quarter, which is sure to bring some comfort to those investors who have experienced the difficult year-long loss. It is a testament to the resilience of the company that even through the turbulent economic times, they have been able to achieve such growth in their share price. This is due to the strong customer base they have amassed, as well as their commitment to providing competitive and value-for-money services. These factors have enabled them to remain competitive throughout the year and will continue to be beneficial for the company going forward.
The increased share price of Aussie Broadband is certainly something for shareholders to rejoice about, despite the long-term losses they have experienced. It is a sign that the company is on the right track and that their future prospects look positive. With continued dedication to providing excellent services and customer satisfaction, Aussie Broadband is sure to continue to bring joy to its investors and customers alike.
Market Price
Despite the positive news, much of the coverage of the company has been negative thus far. On Friday, Aussie Broadband opened at AU$3.0 and closed at AU$3.2, up by 3.9% from its prior closing price of AU$3.1. This is great news for shareholders as the company’s share value is continuing to grow despite the losses earlier this year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aussie Broadband. More…
| Total Revenues | Net Income | Net Margin |
| 696.61 | 12.5 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aussie Broadband. More…
| Operations | Investing | Financing |
| 52.31 | -315.61 | 128.76 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aussie Broadband. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 639.87 | 361.81 | 1.17 |
Key Ratios Snapshot
Some of the financial key ratios for Aussie Broadband are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 3.7% |
| FCF Margin | ROE | ROA |
| 0.5% | 6.0% | 2.5% |
Analysis – Aussie Broadband Intrinsic Value Calculation
At GoodWhale, we have taken a closer look at AUSSIE BROADBAND‘s fundamentals in order to provide an accurate assessment of its fair value. Our proprietary Valuation Line has calculated the fair value of AUSSIE BROADBAND shares to be around AU$4.5. However, the stock is currently trading at AU$3.2, which is 28.4% lower than its fair value. This presents an attractive opportunity for investors seeking to benefit from a potentially undervalued stock. More…
Peers
The company is headquartered in Melbourne, Victoria and was founded in 2008. Aussie Broadband Ltd is a privately held company. Aussie Broadband Ltd’s main competitors are Shenandoah Telecommunications Co, Hutchison Telecommunications (Australia) Ltd, Vonage Holdings Corp.
– Shenandoah Telecommunications Co ($NASDAQ:SHEN)
Shenandoah Telecommunications Co is a Virginia-based telecommunications company with a market cap of $987.01M as of 2022. The company offers voice, data, and video services to residential, business, and wholesale customers in Virginia, West Virginia, and Pennsylvania. Shenandoah Telecommunications Co’s ROE for 2022 was 0.11%.
– Hutchison Telecommunications (Australia) Ltd ($ASX:HTA)
Hutchison Telecommunications (Australia) Ltd is a subsidiary of CK Hutchison Holdings Limited, a Hong Kong-based conglomerate. The company provides mobile telecommunications services in Australia. As of 2022, Hutchison Telecommunications (Australia) Ltd has a market cap of 814.35M and a Return on Equity of -128.2%. The company has been struggling financially in recent years, posting losses in four out of the last five financial years.
Summary
Investors in Aussie Broadband have been delighted by news of a 21% increase in the company’s share price over the last quarter, despite a 41% drop throughout the year. This sharp increase appears to have been driven by a single day’s trading, with the share price moving upwards on the day after the news broke. Consequently, it remains to be seen whether this will be a lasting trend or a short-term boost, as analysts have so far been largely negative on the stock’s prospects. Investors can only hope that the positive performance continues and that Aussie Broadband can turn its fortunes around.
