As of 2025-07-04, the Fair Value of Magellan High Conviction Trust (MHH.AX) is 0.21 AUD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 1.78 AUD, the upside of Magellan High Conviction Trust is -88.3%.

Is MHH.AX a good investment?

With the market price of 1.78 AUD and our fair value calculation, Magellan High Conviction Trust (MHH.AX) is not a good investment. Investing in MHH.AX stocks now will result in a potential loss of 88.3%.

1.78 AUD

Stock Price

0.21 AUD

Fair Price

FAIR VALUE CALCULATION

MHH.AX Fair Value

Peter Lynch's formula is:

MHH.AX Fair Value

= Earnings Growth Rate x TTM EPS

MHH.AX Fair Value

= 5 x 0.04

MHH.AX Fair Value

= 0.21

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 0 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

	Historical Earnings

	0Y Avg
Net income
YoY growth	-100%

MHH.AX Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
Magellan High Conviction Trust	1,069	0	0.21	-88.3%
BKI Investment Company Ltd	1,437	0.1	1.17	-34.5%
Australian United Investment Company Ltd	1,367	0.4	2.03	-81.6%
Diversified United Investment Ltd	1,161	0.2	0.85	-84.2%
Carlton Investments Ltd	959	1.5	7.46	-79.5%
Mirrabooka Investments Ltd	728	0	0.38	-88.3%
Ophir High Conviction Fund	717	0.6	7.5	132.8%
Hearts and Minds Investments Ltd	712	0.6	2.8	-9.9%
NB Global Corporate Income Trust	660	0.2	3.79	147.9%
Regal Investment Fund	612	0.6	14.37	402.5%
VGI Partners Global Investments Ltd	452	0.1	2.56	41.6%

MHH.AX Fair Value - Key Data

Market Cap (mil)	1,069
P/E	42.9x
Forward P/E	56.3x

EPS	0.04
Avg earnings growth rate	-100%
TTM earnings	25

MHH.AX Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.