PEXA Group Ltd

PXA: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$72.59	Ynmj	Qmsqbbdvz

Pexa: Valuation Unchanged on Completed Smoove Acquisition

Roy Van Keulen

Dec 20, 2023

We maintain our AUD 15 per share fair value estimate for wide moat Pexa, following the completion of the acquisition of Smoove. Pexa shares have been volatile surrounding updates around the acquisition and currently screen as materially undervalued. We believe Pexa’s core exchange business in Australia is worth AUD 14 per share on a stand-alone basis or AUD 12.50 per share when including net debt. With shares trading at AUD 11.30, we believe the market attributes negative value to Pexa’s expansion in the U.K. market.

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