Due the emphasis in care beds, I think Arvida is the correct retirement village operator to compare against. Now we know the final price, we can do a direct comparison. I've performed it for FY18 as it will include a full year of Arvida's recent acquisitions.
|
OCA |
ARV |
Discount |
PE |
9.4 |
16.1 |
71.38% |
EV/EBITDA |
9.9 |
17.8 |
80.64% |
EV/EBIT |
11.5 |
21.5 |
87.40% |
DEBT/EBITDA |
2.1 |
2.4 |
12.23% |
price/NTA |
0.94 |
1.27 |
35.11% |
Unfortunately, there is not yet much visibility on development profit from FY19 onwards, so we don't really know if OCA's FY18 result will be abnormally high. With that in mind, perhaps the safer comparison is the 35% discount with price/NTA.