Based on the ebitda being incremental, this is how I now see the valuation of the company:
The current long term liabilities are 15m, so if debt of 15m was raised for the new atms, we might end up with 30m debt. If this had an interest rate of 10%, we would be paying 3m in interest. I don't know what the current assets are valued at, but if we say around 40m currently and 55 after the new atms are added, then with a depreciation rate of 10%, we would have 5.5m in depreciation per year. Add in taxes and as far as I can tell we would be looking at about (23 - 3 - 5.5)*0.7 = 11m NPAT. If we then account for 90% ownership and say 1m in corporate costs, we could be looking at 9m in NPAT in FY23. I might therefore estimate a 5.5/550 = 1c dividend in FY23, and at a PE ratio of 10 the market cap would be 90m. What do other people think of this analysis?
VOR Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
