The tax losses are incorporated in my forecasts.The NPAT of...

The tax losses are incorporated in my forecasts.The NPAT of $11.8m is after zero tax.That is, the Profit before Tax is also $11.8m.The EPS of 4.9 cps is also after zero tax.Although there may be a bit of tax in FY21 if earnings are earnt in jurisdictions where AVA don’t have CF losses.

Also, my Cash balance as at June 2021, includes nil tax, and assumes capex is lower than the $2.5m depreciation and amortisation.

I talk about notional tax (not actual tax) only to get to a normalised EPS number, so I can apply an appropriate PE to get to a target or fair value.