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$1.10 netcomm wireless limited

Completely undervalued, page-46

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RP84

233 Posts.

43

05/06/18

22:21

Post #: 33516256
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Originally posted by Kenbyw ↑

Your calculation of the 2018 share price at $1.33 has spooked me a bit. You could look at the intrinsic value of NTC shares as being the discounted sum of its future cash flows. This excludes the impact of non cash items such as depreciation and amortisation. In this case it may be useful to compare the current NTC Enterprise Value/EBITDA multiple of 29 (source Yahoo Finance) using your projected 2018 EBITDA (Net profit of $8m add back $8m depreciation and amortisation plus $2m in tax = $18m). Therefore the projected 2018 EV/EBITDA would then be 10.6 (191/18) which should be a strong indicator of value and supportive of the Simply Wall St $3+ share price.

DYOR

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Thanks again. So if BRAGG was correct on the EPS (I've now seen than ther half year EPS was 2.51c so it must be pretty close to the mark), then the PE of 25 must be in your opinion far too low? It would be closer to 60 to get a SP of $3.

NTC Price at posting: $1.23 Sentiment: Hold Disclosure: Held
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