(12-12-2016, 11:46 AM)edragon Wrote: If do not use PE, how about yield?
I am not saying cannot use PE. I was saying that cannot only use PE alone to value iFAST. Since the cut of AUA forms most of the revenue model, a dividend discount model might also be used to value iFAST, since we can roughly gauge their revenue and cash flow from AUA, supported by relatively high dividend payout.
Even if you only use PE, you should compare with similar companies with an asset light model like iFAST, and see whether a PE of 25x is high by industry standards.
Hope that the above clarifies.