Fair & Under Value Opportunities

Looking for current opportunities within the Australian Market. A place to submit and garner ideas for the benefit of those who participate.

To kick off discussion, I'll put forward Servcorp (SRV) which has had a 5 year mean return on equity of 22.7%. The current equity per share of SRV is around $1.84, which puts its Bond valuation ([ROE/required Return]*Equity per share) at around $2.80 @ a required rate of 15%.

This bond style valuation does not take into account any growth from retained profits.

I think this business has the potential to be much larger in 10 years time than it is today.

Your thoughts are welcome...