"Preference is to use EV/EBITDA for a business like this - just...

"Preference is to use EV/EBITDA for a business like this - just personal preference."

So you ignore the capital charge?

Might be able to get away with that for a SaaS business or other such asset-light enterprise, but clearly ignoring what goes on below the EBITDA line in this case is going to result in a bum steer given MCE is both a capital-intensive, as well as a lease-heavy, business (Lease liabilities are equivalent 80% of the total assets of the business and around the same as the current Market Cap of the company).

Heck, even valuing down to the EBIT level might overstate the fundamental value of the business given the $2.0m of lease interest that gets booked below the EBIT line.

So EV/EBITDA is almost meaningless.


"Where is your $5m cost of business number taken from? and D&A of $4m"

For D&A, FY2022 D&A of $3.50m (FY2021: $4.56m) is taken from Note 7 of the Annual Report:



I've assumed a moderate increase in the fixed and leased asset base to support the increased Revenues, so I've assumed D&A will rise from $3.50m to $4.0m in FY2023



As for CoDB, the P&L reflects a total of $7.60m (represented by Admin @ $3.88m, Marketing @ $2.25m, Research @ $0.35m, Engineering @ $-1.08m and Other @ $0.04m))

But remember, this CoDB includes the D&A charge which has been allocated across those CoDB categories; so - net of the D&A charge - the "pure" CoDB is $7.60m less $3.50m = $4.10m.

Again, to account for expanded business activity, as well as general inflation impacts, I'm assuming an increase in CoDB in FY2023, to $5.0m,

Trust that clears things up for you.

.