McMillan Shakespeare’s trials and tribulations
Salary packaging group McMillan Shakespeare has gone from market darling to ugly duckling in just over 12 months. As at June 30, 2013, the company’s shares traded at $16.18, implying a price-earnings multiple of 19.8, relative to its 2012-13 profit.
Salary packaging group McMillan Shakespeare has gone from market darling to ugly duckling in just over 12 months. As at June 30, 2013, the company’s shares traded at $16.18, implying a price-earnings multiple of 19.8, relative to its 2012-13 profit.
While the company had established an impressive record of profitability and earnings growth, its multiple left little room for disappointment, and when this came in the form of proposed changes to fringe benefits tax legislation, the company’s shares plunged more than 60 per cent from an all-time high of $18.64 in July 2013 to $6.75.
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