Whilst Australia is home to a great number of quality growth shares, many of them trade on sky high multiples that can be off-putting for risk averse investors.
But not all of them trade at such premiums. I believe the two shares listed below trade on very reasonable levels given their current growth profiles.
BWX Ltd (ASX: BWX)
BWX is the company behind the increasingly popular Sukin skincare range. Thanks to Sukin's international expansion and the recent acquisitions of US-based Mineral Fusion and Australian online retailer and influencer Nourished Life, I expect BWX to grow EBITDA by close to 50% in FY 2018.
Based on this growth I estimate that its shares are currently changing hands at a little over 23x forward earnings. I feel this is remarkably cheap for a company which is growing earnings so strongly and has such solid long-term growth prospects.
Money3 Corporation Limited (ASX: MNY)
In FY 2017 this fast-growing credit provider delivered an impressive 44.5% increase in full-year net profit after tax to $29.1 million. The main catalyst for this growth was its secured automotive loans business which saw its gross loan book increase 41% from $151.8 million to $213.9 million.
Pleasingly, management sees the potential for significant growth in the future. It estimates the addressable used car market in Australia to be approximately 700,000 vehicle sales per annum. With Money3 writing 14,000 automotive loans in FY 2017, this represents just 2% of the addressable market. At present Money3's shares trade at a lowly 8x trailing earnings.
