Agree. All things considered I actually think it is quite positive.
The earnings guidance shows us that the FY22 EBITDA was around ($12.6m) and has improved by approx. $5.5m in FY23 via a mix of revenue increases and reduced OPEX. Given that our run rate EBITDA is just about at even now, we can expect the year ahead to be positive on an EBITDA basis which will be a further $7m+ improvement in FY24 from FY23.
At the current market cap of c.$16.5m (EV c.$18m?), a business that is expected to be profitable and growing EBITDA by $6-7m p.a. is well underpriced in my opinion. At this rate we’ll have an EV/EBITDA multiple of 2-3x in the next couple of years.
My expectation for a company of this nature would be a multiple closer to 10 (approx. 4x from the current share price in the next year or two) but I’m open to hearing other suggestions on this.
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