G8 Education: now offering a PER of 15, with 80% EPS growth for FY15

G8 Education: now offering a PER of 15, with 80% EPS growth for FY15. Aaron Muller reiterated his strong view on G8 Education after its pullback from $5.60 to $4.86 on the market weakness that started in early September. The PE has come back to 15 times, in line with the All Ords. However, whereas the EPS growth across the All Ords is in single digits, GEM offers 58% growth in FY14, and 80% in FY15. No further acquisitions are expected this year, with GEM having doubled its portfolio already this calendar year. However, there may be scope in time to take on a further $80 mil in debt, without exceeding a coverage ratio of 2.5 times. Aaron Muller's recent research on G8 Education is available here: (VIEW LINK)


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