Another dumb monopoly privatisation takes flight
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Following the privatisation of Australia’s monopoly land titles platforms by our state governments, Australia’s monopoly electronic property transfer market – Property Exchange Australia (PEXA) – is about to be floated on the sharemarket:
[Morgan Stanley] analysts valued the company using a long-term discounted cash flow model with a 9 per cent weighted average cost of capital. They said it the $1.6 billion to $2.3 billion enterprise value range equated to a 12.4-times to 17.9-times one-year forward sales…
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.