QAV Light Weekly Update — 29 June 2026

Hap­py Mon­day, Light Brigade!

And a big wel­come to all of our new mem­bers.

Well it’s near­ly the end of the finan­cial year. Despite the recent mar­ket issues, it’s been a cork­er year for QAV mem­bers, and I hope you’ll all share your returns with me next week. 

Market This Week (All Ordinaries)

Anoth­er rough week for the Aussie mar­ket — the All Ords dropped around 0.74% over the five days, drift­ing pret­ty steadi­ly low­er from around 9,050 down to the 8,960s with no real signs of life.

All the best,
Cameron

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PORTFOLIO UPDATE

Drill down into the wid­get above to see how we are per­form­ing over dif­fer­ent time­frames, or vis­it our live port­fo­lio page.

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SELLS

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BUYS

3. Peet Limited (PPC)

We added PPC as a Pos­si­ble buy back on 14/04/2026 @ $1.920 — the price has dropped since then and it cur­rent­ly $1.790 (-7%). I’m adding it to an actu­al port­fo­lio today. 

Found­ed in 1895, Peet Lim­it­ed has spent more than a cen­tu­ry acquir­ing, devel­op­ing, and mar­ket­ing res­i­den­tial land across Aus­tralia, mak­ing it one of the coun­try’s old­est con­tin­u­ous­ly oper­at­ing prop­er­ty devel­op­ers. The busi­ness works across three seg­ments: Funds Man­age­ment, where it pro­vides under­writ­ing, cap­i­tal rais­ing, and asset iden­ti­fi­ca­tion ser­vices; Com­pa­ny-Owned Projects, where it acquires and devel­ops land parcels for res­i­den­tial pur­pos­es; and Joint Arrange­ments, where it part­ners with gov­ern­ments, statu­to­ry author­i­ties, and pri­vate landown­ers to bring projects to mar­ket. Perth serves as the com­pa­ny’s head­quar­ters, and its oper­a­tions span the nation­al res­i­den­tial land mar­ket rather than any sin­gle state. At a mar­ket cap­i­tal­i­sa­tion of $838 mil­lion, Peet occu­pies a mid-tier posi­tion in Aus­tralian prop­er­ty devel­op­ment, large enough to access insti­tu­tion­al cap­i­tal and man­age com­plex joint ven­ture struc­tures, but oper­at­ing in a sec­tor dom­i­nat­ed by diver­si­fied majors with broad­er asset bases. Aver­age dai­ly trad­ing vol­ume of $507,000 sig­nals mod­er­ate liq­uid­i­ty, typ­i­cal of a com­pa­ny that attracts long-term hold­ers rather than short-term traders. Direc­tor own­er­ship sits at just 0.3%, a fig­ure investors should weigh when assess­ing man­age­ment align­ment with share­hold­ers. The finan­cial data points to a com­pa­ny trad­ing at a mean­ing­ful dis­count to many peers, with a P/E ratio of 9.95 against a back­drop of strong finan­cial health and a sta­ble trend. A qual­i­ty score of 72.7% sug­gests the busi­ness gen­er­ates con­sis­tent returns with­out sig­nif­i­cant struc­tur­al weak­ness, which makes the low earn­ings mul­ti­ple the most imme­di­ate point of inter­est for val­ue-ori­ent­ed investors assess­ing entry.

Framework Overview

Peet Lim­it­ed was trad­ing at $1.790 at the time of this analy­sis, imply­ing a mar­ket cap­i­tal­i­sa­tion of approx­i­mate­ly $838.0 mil­lion.

Our QAV Score is a com­pos­ite mea­sure of busi­ness qual­i­ty and rel­a­tive cheap­ness. The score for Peet Lim­it­ed is 0.157. Our buy thresh­old is 0.10, and this stock is above it, clear­ing our pri­ma­ry buy thresh­old.

The Qual­i­ty Score is 72.70% against a 75% thresh­old; this com­pa­ny does not clear it. A sub-75% score sig­nals poten­tial weak­ness­es in the busi­ness mod­el or cap­i­tal man­age­ment.

Valuation

Intrinsic Value

Two intrin­sic val­ue esti­mates are cal­cu­lat­ed using dif­fer­ent assump­tions about growth and required return. At $1.790, the stock is above Intrin­sic Val­ue 1 and above Intrin­sic Val­ue 2.

Above-IV pric­ing requires con­fi­dence in above-aver­age growth; there is less room for the busi­ness to dis­ap­point.

Book Value

Book val­ue rep­re­sents assets minus lia­bil­i­ties: the account­ing floor of what the busi­ness is worth. The share price is above book val­ue, reflect­ing the mar­ket’s pric­ing of earn­ings pow­er beyond stat­ed assets.

The Book Plus 30% test applies a more gen­er­ous thresh­old that allows for the pre­mi­um qual­i­ty busi­ness­es typ­i­cal­ly com­mand. Peet Lim­it­ed pass­es this test. A pass here is con­sis­tent with fair-to-cheap pric­ing rel­a­tive to the com­pa­ny’s net worth.

Cash Generation & Liquidity

Operating Cash Flow

Account­ing earn­ings can be manip­u­lat­ed; oper­at­ing cash flow is hard­er to fake. Price/OCF focus­es on what the busi­ness actu­al­ly pro­duces.

The Price to Oper­at­ing Cash Flow ratio for Peet Lim­it­ed is 4.62. Our thresh­old is 7x, and this stock clears it, a pay­back peri­od with­in our pre­ferred range. At the cur­rent rate of cash gen­er­a­tion, it would take approx­i­mate­ly 4.6 years for oper­a­tions to pro­duce cash equiv­a­lent to the cur­rent mar­ket price.

Trading Liquidity

Aver­age dai­ly trade sits at $0.507 mil­lion, clas­si­fy­ing this as a Small-Cap stock. This is a thin­ly trad­ed stock. For larg­er investors, attempt­ing to build or exit a mean­ing­ful posi­tion could move the mar­ket against you. A prac­ti­cal guide­line: keep posi­tion size below 20% of aver­age dai­ly vol­ume, rough­ly $101,400 per trade in this case.

Profitability & Earnings

Current Profitability

The com­pa­ny gen­er­at­ed 17.98 cents EPS before abnor­mal items. Pos­i­tive EPS con­firms the com­pa­ny is mak­ing mon­ey, pro­vid­ing a foun­da­tion for the val­u­a­tion analy­sis.

Price-to-Earnings Ratio

The P/E ratio is 9.95. Investors are pay­ing 9.9x trail­ing earn­ings. A sub-15 P/E is below the long-run mar­ket aver­age, his­tor­i­cal­ly asso­ci­at­ed with val­ue ter­ri­to­ry.

Financial Health

The finan­cial health rat­ing sum­maris­es bal­ance sheet qual­i­ty, draw­ing on debt, liq­uid­i­ty, and equi­ty met­rics. Peet Lim­it­ed car­ries a Strong health rat­ing with a Sta­ble trend.

Robust finances with a sta­ble trend reduce the risk of cap­i­tal rais­es or covenant stress dur­ing down­turns.

Equity Growth

Share­hold­ers’ equi­ty has not grown con­sis­tent­ly. Errat­ic equi­ty can reflect earn­ings volatil­i­ty, dilu­tion, or cap­i­tal returns, the cause deter­mines the sig­nif­i­cance.

Management & Ownership

Direc­tor own­er­ship is a rough proxy for align­ment between man­age­ment and share­hold­ers.

Direc­tors at Peet Lim­it­ed hold approx­i­mate­ly $2,515,145 worth of shares, rep­re­sent­ing 0.30% of mar­ket cap­i­tal­i­sa­tion. Our thresh­old is 10%; this com­pa­ny is below it. Man­age­men­t’s per­son­al finan­cial expo­sure to the stock is lim­it­ed, worth fac­tor­ing into how you weigh their stat­ed con­vic­tions.

Momentum & Income

Technical Signal

The stock has­n’t reg­is­tered a new 3‑point upturn. Price action remains in a pri­or pat­tern.

Dividend Yield

The div­i­dend yield is above the cur­rent mort­gage rate. Yield above the mort­gage rate means share­hold­ers are earn­ing a return com­pa­ra­ble to their cost of debt.

Summary

At $1.790, the key fac­tors for Peet Lim­it­ed are:

Strengths

• Strong finan­cial health
• Price to Oper­at­ing Cash Flow ratio of 4.62

Concerns

• Price above Intrin­sic Val­ue 1
• Price above Intrin­sic Val­ue 2
• Price above book val­ue
• Incon­sis­tent equi­ty growth
• No recent upturn in sen­ti­ment
• Low direc­tor own­er­ship at 0.30%

Whether the cur­rent price ade­quate­ly com­pen­sates for these risks depends on your port­fo­lio con­text, risk tol­er­ance, and invest­ment time­frame.

Key Metrics

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And here’s my TikTok of the week.

CURRENT HOLDINGS & HISTORICAL TRADES

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** Please remem­ber to review our Buy­ing Guide­lines to under­stand which cap bands you should be look­ing at and oth­er impor­tant con­sid­er­a­tions.

DISCLOSURE

Please review our trad­ing and dis­clo­sure pol­i­cy.

FOR NEW MEMBERS

If you’re new to QAV Light, here’s a quick reminder on how it works.

1. We send you an email every Mon­day advis­ing which stocks we are adding to our Light port­fo­lio.
2. You can copy our trades, but please remem­ber to review our Trad­ing Guide­lines. And con­sult a finan­cial plan­ner before mak­ing any deci­sions.
3. We don’t rec­om­mend that you add stocks which are already in our port­fo­lio.
4. If one of the stocks we add breach­es one of our sell con­di­tions, we will sell it from our port­fo­lio and you’ll get an email advis­ing of the trade.
5. If you come across any QAV ter­mi­nol­o­gy that you don’t under­stand, please review our ter­mi­nol­o­gy guide or just email us for clar­i­fi­ca­tion.

That’s it for today!

If we decide to buy or sell some­thing, we’ll let you know.

Got a ques­tion?
[email protected]

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