Update shared on 14 Nov 2025
Fair value Increased 1.55%Narrative Update on Ventia Services Group
Analysts have raised their price target for Ventia Services Group from $5.54 to $5.63. They cite subtle adjustments to discount rates and future earnings projections as the primary drivers behind the modest increase.
What's in the News
- Ventia has secured a $935 million contract to provide service and support for clothing capability to the Australian Defence Force. This contract will begin in May 2026 for an initial seven-year term, with the potential for extension for up to 13 more years. (Key Developments)
- The company announced the extension of its Facility Management Agreement with the City of Sydney. The agreement is valued at approximately $100 million over two years and covers integrated management of 251 city-owned assets. (Key Developments)
- Ventia has been awarded two Base Services Transformation packages by the Department of Defence worth approximately $2.7 billion over six years, with options to extend up to 10 years. These packages include Living and Working Services in the Northern Territory, Victoria, and Tasmania, as well as Property and Asset Services in Western Australia, Victoria, and Tasmania. (Key Developments)
Valuation Changes
- The Fair Value Estimate has risen slightly from A$5.54 to A$5.63, reflecting higher expectations for the stock's intrinsic worth.
- The Discount Rate increased from 8.16% to 8.38%, indicating a modestly higher risk premium applied in valuation.
- The Revenue Growth projection remains essentially unchanged, holding steady at approximately 5.49%.
- The Net Profit Margin has edged down marginally from 4.24% to 4.23%.
- The future P/E ratio has increased from 18.04x to 18.50x, suggesting a slightly higher valuation of future earnings.
Disclaimer
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