Was looking at this recently. Just on your numbers and another perspective on why it may not look as cheap as you think, you’re excluding lease liabilities from debt. That’s almost $44m worth and changes the value materially.
Also, you’re using forecast EBITDA but not accounting for the ~$7.5m spent on acquisitions this calendar year which increases net debt further.
At 14c the market cap is $28.1m. Add $49m in net debt which accounts for post balance sheet movements and the EV is $77m.
EBITDA of 8.6m gives me an EV/EBITDA of ~9x. So fair value imo right now but does not account for growth or M&A.
Still worth watching and could be done upside but not a screaming buy yet.
ALO Price at posting:
14.0¢ Sentiment: None Disclosure: Not Held
