Page 243

NZX LIMITED (NZX:NZ)

ELEVATION CAPITAL – ESTIMATED INTRINSIC ■

If NZX implement the changes that we are suggesting in the Opportunties section, we estimate the intrinsic value range to be NZ$1.62 - NZ$1.89 per share.

This does not include a 50% sale of the Dairy Derivatives business to a global player, or relinquishing more regulation to the FMA - these initiatives should be viewed as further potential upside.

NZX Core Markets + Corporate

Basic Assumptions: FY2019 Valuation: SCENARIO Estimated Fair Value

NZX Funds Services

Op. Revenue = NZ$54.3M Op. Earnings = NZ$27.9M Op. Margin = 51.3%

FUM = NZ$3.42B

FUA = NZ$3.45B

13x EV/EBITDA

2% of FUM

Replacment Value (Purchase + Capex)

NZ$361.6M (NZ$1.34 per share)

NZ$68.3M (NZ$0.25 per share)

NZ$8.3M (NZ$0.025 per share)

Estimated Combined Fair Value = $438.3M ($1.62 per share) Basic Assumptions: FY2020 Valuation: SCENARIO Estimated Fair Value

Op. Revenue = NZ$58.1M Op. Earnings = NZ$32.9M Op. Margin = 56.7%

FUM = NZ$3.76B

FUA = NZ$3.79B

13x EV/EBITDA

2% of FUM

Replacment Value (Purchase + Capex)

NZ$427.4M (NZ$1.59 per share)

NZ$75.2M (NZ$0.28 per share)

NZ$8.3M (NZ$0.025 per share)

Estimated Combined Fair Value = $510.8M ($1.89 per share)

243

Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018