Some thoughts on a valuation model based on the *aspirational*...

Some thoughts on a valuation model based on the *aspirational* NPATA margin *target*.

In the last results presentation they detailed some medium term margin targets.

The key target being a FY26 NPATA margin of 5.3%.

Given costs and therefore profits have been all over the place in recent years I consider it useful to look at revenue as a valuation guide (based on the stated aspirational NPATA margin target).

A FY26 P/E multiple of 10x equates to a revenue multiple of roughly 0.5x revenue.

***Assuming*** that revenue remains at $100M until FY26 (no growth) and that they do achieve the NPATA margin of 5.3% it is currently trading on a FY26 P/E of 10.2x.

$54.27M (current market cap) / $5.3M (FY26 NPATA) = 10.2.

One could argue that it is starting to look very interesting now, especially if the cash balance remains high given their stated lower FY25 and FY26 OPEX and CAPEX. What we can conclusively say, is that NXD wasn't worth ~$250M where it was trading at its peak.