The question I wish to pose is this. If SKE wanted to direct all of their underlying earnings into paying off debt, how long would that take?

Bank Debt $28m {A}
Underlying Net Profit After Tax $45.799m / year {B}
Minimum Debt Repayment Time 0.61 years {A}/{B}

Being able to pay off all your company debt within 8 months is an enviable position to be in. So we can now proceed to the 'Buffett Growth Model' and see what kind of numbers pop out. Don't take this post as an endorsement to buy SKE yet though. All I have looked at so far is what you get, and what you get looks very good. From an investment perspective though, the most critical thing is what you pay. And I haven't made any assessment at all about market value yet. Paying too much for something good is not good investment practice. So how much would be too much to pay for SKE? Let's see.

SNOOPY