So their latest trading update values the pepkor brand using a multiple of ebitda. Now Pepkor has a 4bn EBITDA and they use a multiple of 8 as the evaluation criteria. compare this to Mr Price - 2bn EBIDTA with a market cap of around R40bn - implies close to a 20 times EBITDA multiple. If my maths is correct (and I could be way off here) - then Brait's 37% stake in Pepkor alone is worth around R18bn (at an industry average of 18times EBITDA). Now add the other investments, and it becomes apparent that Brait is trading below NAV. (Current market cap of around 23bn). I have held a leveraged position since around march - and I think off the back of these results - I will continue to hold.
to add to this Simon - when we talk of the NAV of Naspers or PSG, for example, analysts value them at the discount of the listed price of their holdings - but none of Brait's holdings are listed, so why not apply the same rationale (i.e. what would they be worth if they were listed?). I guess Brait always has that trump card, if it ever became an issue that their assets were significantly under valued - they could always list them separately?