We can just sit back and IMAGINE numbers, so for FY19 CNW keeps on rolling at a cruising speed of
100 MIL REVENUE, they improve EBITDA margin slightly up to 9% ( still below IT sector) of 10-15%.
and the generous Mr market (investors) decides to up the comp valuation on Ebitda multiples of x 7 ( since CNW has demonstrated 7 years earning growth.
so than 100 mil revenue x 9% Ebitda margins. x 7 = M/ CAP of 63 mil . this is 4 to 5 x higher than today.
OBVIOUSLY, this may never occur in real life, but it does in my fantasy, and even if we reach a M/cAP
of 3 x more in two years, no harm was done to anyone.
CNW Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held