Tenon is undertaking a strategic business review to identify a path to increase shareholder value. Our analysis suggests a very positive outlook for its core US markets; the company is set to deliver faster earnings growth and this is clearly visible in FY16 trading to date. Tenon currently stands on mid- to low single-digit prospective valuation multiples. Peer group comparisons suggest a valuation range in excess of NZ$4.51 based on calendarised 2015 multiples, and higher still on estimates beyond this.

03 Dec 2015
Deep value in US housing markets

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Deep value in US housing markets
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03 Dec 2015 - Author:
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Tenon is undertaking a strategic business review to identify a path to increase shareholder value. Our analysis suggests a very positive outlook for its core US markets; the company is set to deliver faster earnings growth and this is clearly visible in FY16 trading to date. Tenon currently stands on mid- to low single-digit prospective valuation multiples. Peer group comparisons suggest a valuation range in excess of NZ$4.51 based on calendarised 2015 multiples, and higher still on estimates beyond this.