Core Viewpoint - ANZ Banking Group's share price is currently around $33, and various valuation methods, including the price-earnings (PE) ratio and dividend discount model (DDM), are utilized to assess its value in comparison to its peers in the banking sector [1][3]. Valuation Methods - The PE ratio compares a company's share price to its earnings per share, with ANZ's current PE ratio calculated at 15.4x, compared to the banking sector average of 19x, suggesting potential undervaluation [5][8]. - A sector-adjusted PE valuation for ANZ, based on its earnings per share and the sector average, results in a valuation of $41.70 [8]. - The DDM approach forecasts future dividends instead of profits, with ANZ's last year's dividend of $1.66 assumed to grow at a consistent rate, yielding a valuation of $35.10, which increases to $35.74 with an adjusted dividend of $1.69 [9][13]. Risk and Growth Considerations - The analysis emphasizes the importance of studying the growth of total loans on the balance sheet, as rapid growth may indicate excessive risk, while slow growth may suggest conservatism [15]. - Key areas to focus on include provisions for bad loans, assessment rules for bad loans, and sources of capital, noting that overseas debt markets carry more risk compared to customer deposits [16].

Core Viewpoint - easyJet's share price has declined following a solid Q3 update due to a less optimistic near-term outlook, but there are indications that the shares may recover [2][6]. Financial Performance - Passenger revenue increased by 9.7% to £1.76 billion, ancillary revenue rose by 5.6% to £732 million, and Holidays revenue surged by 27.4% to £428 million, leading to a total group revenue growth of 10.9% to £2.92 billion [3]. - The airline's headline EBIT margin improved by 115 basis points to 10.04%, driven by a 7.3% decline in fuel unit costs to 1.65p, resulting in a slight increase in total fuel costs to £627 million [4][5]. - Headline pre-tax profit (PBT) saw a healthy increase of 21.1% to £286 million, aligning with previous forecasts [5]. Guidance and Market Reaction - The absence of reiterated FY25 guidance led to a decline in the share price, with analysts adjusting PBT estimates down to approximately £656 million from £697 million due to anticipated impacts from ATC staff strikes and higher fuel costs [6][7]. - Despite the negative sentiment, Q4 forward bookings are 1.0% higher than the previous year, and there is an upward adjustment in ASK growth for the year from 8.0% to 9.0% [8]. Future Outlook - The company aims for a medium-term PBT exceeding £1.00 billion and a 60.0% increase in net book value, with expectations of reiterating or upgrading its outlook in November [10]. - The stock is currently undervalued with an EV/EBITDA ratio of 2.4 compared to the sector average of 8.4, and projected earnings growth at a CAGR of 11.9% through FY27 suggests a potential for recovery [11].