Australian Investment Blog

Medibank Private is offered between $1.55 and $2, this means what?

Sorry, but let me have my morning whinge... Whatever happened to the “good old days”? Call me old fashioned, but I prefer companies floating at a fixed price, you evaluate it and then decide to buy or not. Now due to “progress” we have to assess a potential price range of 29%. How many assets do we purchase without knowing the actual price within 29%?

Firstly, let’s look simply at the important parameters that this range of pricing represents for Medibank Private:

Medibank Private will have a Market Cap. of $4,269 - $5,508 million.

The indicative pro-forma forecast FY15 P/E ratio is 16.5x and 21.3x.