Quote Originally Posted by Snoopy View Post
The only time I have seen "ex.-cash PE" mentioned before was on the A2 Milk thread when some shareholders were desperately trying to justify an overvalued share price. The cash was not surplus there, and it is not surplus here. It is the board that decides whether cash is surplus or not. There is no sign of either the A2 board or MCK board doing so.

You have said yourself that:

"The 2nd Queenstown resort is now currently being refurbished after the first one was just finished, with the Rotorua resort the next to likely be done."

So you are aware that in reality there is more work to be done. How do you know the cash on hand is 'far in excess of working capital needs'? There are 'refurbishments' and 'refurbishments'. Do you sit around the MCK board table? They may be eyeing an acquisition for all you know. I don't claim to know any more or as much about the hotel business as you do LaserEyeKiwi. But I do know that returns on capital invested are historically not great, and Covid-19 has not improved those returns. So there is a need to keep financials conservative.

Let's be clear, I am not arguing that MCK is a dud investment. I can see value here. But there is no need to make up financial statistics to measure it.

SNOOPY
I usually invest in US companies. Ex-cash valuation metric is fairly common in US market for fundamental investors looking for undervalued names to see there true valuation multiple. In particular Apple was for a long time valued on an ex-cash basis (levering up with options when ex-cash PE fell below 10 was the best investment I ever made)