PWR Holdings: Shares Are Expensive

Shares in PWR Holdings are expensive compared with our unchanged AUD 9.00 fair value estimate. Granted, PWR is a high-quality company, with a narrow economic moat underpinned by significant brand equity, intellectual property, and entrenched customer relationships. The firm has carved a formidable position in the high-performance automotive cooling niche, with a presence across practically all motorsport competitions—notably Formula One, where PWR supplies every car on the grid. This position also allows PWR to command top-tier aftermarket pricing and position itself as a trusted supplier for high-performance, low-volume production of supercars and hypercars with vehicle manufacturers.