Harvey Norman Holdings Ltd

HVN: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$8.20	Tqmkw	Qgssgslz

Harvey Norman’s Fiscal 2022 Earnings Decline Less Severe Than Expected, but Further Pain To Come

Johannes Faul

Sep 1, 2022

No-moat Harvey Norman’s underlying EPS declined by 9% in fiscal 2022, but earnings receded less than the 29% decline we expected. We increase our fair value estimate by 5% to AUD 3.90 per share due to higher near-term earnings and the time value money impact on our DCF model. At current prices, shares screen as slightly overvalued.

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