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http://smallcaps.co.za/blog/rolfes-worth-over-500cps/

 

 

Rolfes (RLF) is a stock that I’ve written a couple of previous articles on. I hold it in my Small Cap Fund and I have been watching the story play out for a while now.

 

Using the above assumptions after a 10% “Group overhead” discount to the Sum-of-the-Parts (SOTP) and taking out R198m net debt is a fair value of 528cps for Rolfes.

 

This fair value implies a Price Earnings (PE) of 9.9x, which does not compare badly versus Omnia (OMN) and AECI that are both trading at a PE of 16.3x.

 

Rolfes share price is currently 390cps, so this fair value implies that the stock is undervalued by a massive 36% and implies a 12m return of around 70%.

 

 

 

Rolfes is a stock I have also been watching and I am now concidering putting money into it what do you guys think?

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