I have just started looking into this stock. I am not sure if there is much value at current share price.
It looks like current EV/EBITDA is around 8.7. PE ratio is around 19.7.
The path to $60m revenue
Organic growth of 11% gets them to around $48m revenue in FY25.
Acquiring the additional $12m revenue at a multiple of 2 would cost $24m.
Lets assume a cap raise of 12m (1.2 debt to EBITDA multiple) at 0.72 cents (15% discount). Thats 16.67m new shares. New SOI would be 126.64m.
For the remaining consideration lets say $2m cash and $10m loan.
That gets us to $60m revenue by end of FY25. I will assume a $14.6m EBITDA from this revenue (24.5% margin).
A conservative EV/EBITDA of 8 gets us to a share price of around 82 cents.
A PE ratio of 15 (assuming 12% net profit margin) would be 0.85 cents
I don't see any value at the current share price unless they exceed 11% organic growth. Can someone let me know if i'm wrong here. I am happy to be proven wrong.
I have just started looking into this stock. I am not sure if...
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Last
70.0¢ |
Change
0.005(0.72%) |
Mkt cap ! $81.72M | |||
| Open | High | Low | Value | Volume |
| 70.5¢ | 70.5¢ | 69.0¢ | $64.38K | 92.64K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 5827 | 68.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 70.0¢ | 10842 | 1 |
View Market Depth
| Last trade - 16.10pm 14/06/2024 (20 minute delay) ? |
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Last
70.0¢ |
Change
0.005 ( 0.72 %) |
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| Open | High | Low | Volume | ||
| 69.0¢ | 70.0¢ | 69.0¢ | 2579 | ||
| Last updated 15.39pm 14/06/2024 ? | |||||
| LBL (ASX) Chart |