Endeavour Group Ltd Ordinary Shares

EDV: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$7.20	Nsx	Dcqvygrv

Endeavour: Upside Potential to Fair Value Should Efficiency Gains and Return on Hotels Materialize

Johannes Faul

Dec 12, 2023

Shares in wide-moat Endeavour trade at a material 17% discount to our unchanged AUD 6.10 fair value estimate, despite our more cautious view on the near-term outlook for its hotels segment compared with management. By fiscal 2028, management aims to increase the hotels business'—generating about one-third of group earnings—EBIT by at least AUD 150 million versus fiscal 2023. In isolation, such an uplift would boost our valuation by about AUD 1 per share, or 17%.

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