APX's result wasn't as bad as the market reaction, which seemed...

APX's result wasn't as bad as the market reaction, which seemed over the top. APX's EBITDA is around US$78m or A$108m. Yet its market cap is only US$630m or A$875m and it has US$50m in cash. Its EV/EBITDA multiple is around 7.5x. APX has stopped providing guidance but has an aim of doubling revenue by 2026, with an EBITDA margin of 20%. This would lead to EBITDA of US$179m by 2026. Now, APX may not achieve these targets, but I can see a clear runway to higher EBITDA, given global services (big tech) EBITDA is around US$90m and new markets' EBITDA is -US$12m. New markets revenue is growing at >20%, so it is likely that EBITDA will move into profit in the next 1-2 years. I think APX should be on at least 10x EBITDA and that equates to my reset fair value of $9.75/share. I'm going to HOLD the position in my portfolio, as it has to rerate or it will get a takeover offer. Let's hope it doesn't get kicked out of the S&P/ASX 200.