IS NASPERS overvalued at a price-earnings ratio (p:e) of 110? Perhaps not if you consider that education group Curro Holdings, which belongs to the PSG stable, is trading at a p:e of 215.Curro was in the limelight recently after being accused of racism for segregating pupils according to their language or cultural groups. Now that the hullabaloo has died down, it is clear the group’s market valuation and financial results were unaffected — Curro reported a 52% rise in revenue to R1bn and growth in earnings before interest, tax, depreciation and amortisation of 68% to R192m in 2014. The share is up by more than half over the past six months.Together with AdvTech, which sports a more modest p:e of 22, Curro has been cashing in on middle class concerns over the quality of the education provided at government schools. At between R60,000 and R70,000 for grades 10 to 12 at a Curro school, the schooling certainly does not come cheap.Curro was sharply criticised for what was perceived to be...
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