Current PE based on FY2019 is around 40 or 39.4 per data on...

Current PE based on FY2019 is around 40 or 39.4 per data on Market Index (EBIT $21.7m / 113.08m shares) which is a bit lofty in the world gripped by COVID-19 and definitely very lofty should a global recession ensues.

The company has an accumulated loss(es) from previous years of $55.3m which will act as tax shelter for FY 2020 EBIT.

At FY2020 EBIT guidance of $36-38m (take $37m midpoint), at 113.03m shares, PE would be 22.6 which is cheap for company with 70% EBIT growth.

Now, should EBIT growth continue at 70% thereafter, FY2021 EBIT would be around $62.9m, [taxable EBIT: $62.9m - ($55.3m tax shelter - $37m 2020 EBIT)] = $49.5m NPAT.

This gives a forward FY2021 PE of 17.27 which is cheap

There's an assumption that there is no further capital raising built into my calculation,which is obviously unlikely given the upcoming EGM etc etc... Hopefully future capital raise will be done at a much higher price that the current price.

Will EOS with its 70% growth rate see a PE expansion from hereon is anybody's guess. I do think this will be a multi-billion company in the a couple of years time as long as management doesn't engage in any shareholder value destruction activities such as excessive expansion of capital base.