1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
We are cognisant of investor penchant for high-beta, COVID-19 recovery plays such as Event Hospitality and Entertainment, a company that is leveraged to the "pent-up leisure demand” thematic. However, the 21% jump in its share price since the release of fiscal 2021 results on Aug. 23 (versus a 1% decline in the ASX 200) appears exuberant, sitting at a 26% premium to our unchanged AUD 12.00 fair value estimate.
Event Hospitality and Entertainment is an Australian provider of entertainment, hospitality and tourism, and leisure services. Operating under three divisions (entertainment/cinemas, hospitality and leisure/hotels, and property and investments), the company derives the majority of its earnings in Australia, with cinema operations in New Zealand and Germany (in the process of being divested). Key brands include Event Cinemas, Greater Union Cinemas, Rydges Hotels, QT Hotels, and the Thredbo ski resort.
