ALCIDION GROUP LIMITED (ASX:ALC) - ALC - Valuation Overview, page-3 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by Wise_One ↑

In the interests of all the new shareholders that are being attracted to ALC - i'll repost a valuation summary I put together last week which illustrates the sector & its peers both locally & internationally.

Many have asked me, why / how I come up with the values for these specs as I do... this will go a long way in answering it for ALC.

Let's look at ALC & more specifically its peers (why not start with some of the peers mentioned in the MF article yesterday - being PME, NAN & also look at an off-shore company - OneView Healthcare PLC). I would also encourage you all to look at the domestic 3-year price charts!

PME
- Mkt Cap 500m
- P/E 76.45
- P/S 17.71
- 3 yr low - 66c; 3 yr high $6.60

NAN
- Mkt Cap 1B
- P/E 142
- P/S 21.36
- 3 yr low - 73c; 3 yr high $3.60

Oneview Healthcare PLC
- Mkt Cap 250m
- P/E large (earnings negative)
- P/S 72

Note these 3 comparisons, 2 domestic & 1 international are all at more advanced stages in their commercialisation strategies, but not by as much as you would think.

The domestic players are trading at c. 20x sales with extremely large PE's and this is the sort of valuation we can expect for ALC once additional contracts roll in the door. I have said previously that each new contract we win, will be worth 20x its revenue in mkt cap - this is how I have come up with this number.

So - if we win a $2m contract, that is worth $40m in mkt cap (being 6.5cps).

Similarly, the PEs of these companies are extremely large given the enormous future growth potentials which are industry specific & we have discussed these at great lengths previously.

Looking at PME - which IMO is our closest domestically listed comparable company - they only have a T/O of 27m (up from 17m in 2015). We could easily replicate this performance as we are on a strikingly similar trajectory.

If we nail the commercialisation & build revenues to this level over the next 12-18 months, we could also warrant a mkt cap of 500m (same as PME's) which would equate to a share price of a staggering 83 cents!!!!

This is why I am so bullish about this company & am not overly fussed about pips here & there.

The industry has a long way to go to digitise their hospitals & ALC is again in the right place at the right time. Market participants are starting to take notice and we are beginning the re-rating which we deserve. All our peers are worth far more than ourselves with gives us more scope to shoot higher.

When the likes of Sky News, YMYC, Motley Fool etc... start to talk / write about ALC, you know the message is starting to creep out. This will do wonders in the re-rate.

Every savvy investor is looking for market mis-pricing for whichever reason - we have it due to a lack of share market awareness of the stock.

Remember the key valuation metric here is 20x sales... Q1FY17 had 1.385m in sales (annualised is 5.54m) which = valuation of 110.8m (or 18.5 cents per share) on current run-rate!

New contracts add 20x sales to the valuation!

Bring on those new contracts & re-rate at 20x sales value accordingly!

Expand

This sector is about to boom - the market hasn't fully woken up yet.

Just a quick technicality with ONE - their EV is a fair bit lower than their MC as they have 40 million euros cash in hand.

Even with that, ALC is IMO a superior company but just wanted to point it out as it does affect your figures.

No.	Vol.	Price($)
3	409988	6.5¢

No.

Vol.

Price($)

409988

6.5¢

Price($)	Vol.	No.
7.1¢	35000	1

Price($)

Vol.

No.

7.1¢

35000

No.	Vol.	Price($)
3	409988	0.065
2	147610	0.063
2	300000	0.062
3	182989	0.061
6	963000	0.060

No.

Vol.

Price($)

409988

0.065

147610

0.063

300000

0.062

182989

0.061

963000

0.060

Price($)	Vol.	No.
0.071	35000	1
0.072	41600	2
0.073	206283	4
0.075	34550	2
0.077	12987	1

Price($)

Vol.

No.

0.071

35000

0.072

41600

0.073

206283

0.075

34550

0.077

12987

(20min delay)
Last 6.5¢		Change -0.008(11.0%)		Mkt cap ! $87.26M

Open	High	Low	Value	Volume
6.8¢	7.0¢	6.5¢	$146.1K	2.196M

ALC - Valuation Overview, page-3

From the Floor: Minerals Council WA chief talks uranium and gold

From the Floor with Kim Beazley at Diggers and Dealers 2024

Your questions From the Floor: Astral Resources (ASX:AAR)

From the Floor with Federal Opposition Leader Peter Dutton at Diggers & Dealers 2024

Your questions From the Floor: Fenix Resources (ASX:FEX)

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

ALC - Valuation Overview, page-3

Top Stories

From the Floor: Minerals Council WA chief talks uranium and gold

From the Floor with Kim Beazley at Diggers and Dealers 2024

Your questions From the Floor: Astral Resources (ASX:AAR)

From the Floor with Federal Opposition Leader Peter Dutton at Diggers & Dealers 2024

Your questions From the Floor: Fenix Resources (ASX:FEX)

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News