Ann: June 2016 Quarterly Report and Appendix 4C-YOW.AX, page-64

The cold hard reality is this. The company is loosing cash, not making cash. They lost AUD4.5m in cash in fy16.

However, if you listen to the hype, dream ahead and hope that they can get their act together, a reasonable rationale hope would be the company can produce 5m npat by the end of fy18. If they achieve that and then growth slows to a crawl or declines (ie the fad dies), the foward pe the market will assign to this will be brutal imo. It will naturally revert to the market mean of roughly 15 or less. Take the banks for example, their growth has stalled and the market is pricing them on a forward pe of between 10-14, even with their substantial dividends.

So even if YOW turn things around and reaches 5m npat within 2 years, with 206m shares on the register (and that will only increase), at a pe of 15 gives a sp of 36c.

Be careful out there and dont pay too much for growth that stalls.