Now that the company is regularly delivering positive EBITDA, there is a better reason to value their unused tax losses. At 30/6/23, it represented 53.2 M$, which corresponds to a potential tax benefit of 16 m$ (at 30 % rate). This is significant for a company which has a market cap of 65 m$ and an enterprise value of 56 m$.
Another way to look at it : it has an enterprise value of 40 m$ after valuing this tax benefit, which corresponds to 2.8 x its last quarterly EBITDA annualised. Such a valuation corresponds more to a very cyclical sector than the water treatment sector which is expected to show regular growth.
SDV Price at posting:
34.0¢ Sentiment: None Disclosure: Held
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