We cut our fair value estimate for EVT by 7% to AUD 12.50 per share. Challenging operating conditions that led to the 19% slump in fiscal 2024 underlying EBITDA (pre-AASB 16) to AUD 151 million show no signs of easing.
EVT is trading within a range we consider fairly valued.
Price
A$10.42
Fair Value
A$35.30
Uncertainty
High
1-Star Price
A$22.38
5-Star Price
A$6.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say
Bulls
EVT has a solid culture and management team with a track record of exploiting mature assets to maximize cash flow. This in turn leads to strong and maintainable sources of fully franked dividends.
Bears
EVT operates in mature and cyclical industries leveraged to discretionary expenditure.
EVT is an Australian-based provider of entertainment, hospitality, and leisure-related services. The entertainment arm consists of cinema operations in Australia (Event Cinemas), New Zealand, and Germany, as well as the State Theatre in Sydney, complemented by various restaurants and bars. The ventures arm consists of development of the group's vast property portfolio and provision of hotel management solutions to third parties. The travel arm consists of the group's hotel operations (QT, Rydges, Atura), and the Thredbo ski and mountain-biking resort. The group generates the most of its earnings in Australia.