$1 Club, page-30851

Yes that's correct, but it turns out to be the same thing Kev. Original price was A$41.3M for 42% which therefore valued IDSB at A$98.3M. The original announcement said that if IDSB did RM30M (A$10M) Profit Before Tax, the price would remain unchanged. So it was intended to be 10x PBT as you say. In FY21 they did A$10.3M revenue so the original purchase price turned out to be 10x revenues. I'm just using a revenue multiplier so it's apples-for-apples with the other companies I track. However it's probably more accurate to re-jig it to show what they will actually end up paying. Per the December Quarterly Activities report, the unaudited PBT is A$6,747,021 so that puts IOU's revised valuation of IDSB at $67.4M. Given FY21 revenue noted above, that's around 6.5x revenues. As noted above, I think more like 3.5x revenue is fair based on other ASX lenders/fintechs.

If I'm wrong, and IDSB is actually worth $67.4M today, that implies the rest of IOU's business (BNPL and iSentric) is worth close to zero - because they're trading at $28.8M market cap, which is the same value as their 42% share of $67.4M. Sure, they don't technically own that amount yet, but the market is always forward-looking.