CMP 0.79% 31.5¢ compumedics limited

CMP deserves fair valuation

  1. 370 Posts.
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    Using revenue model with the average price-to-sale ratio of 3.35 for firms in healthcare product industry.
    (reference: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html )

    The current revenue for 2015 is $33millions, with growth over 10 percent on the basis of half-year result.
    The market cap from the revenue model is about $115.5 millions, => share price about $0.69


    The potential for CMP is much larger, due to massive investment into R&D and eHealth.
    eHealth has already secured $10millions dollar order in China.
    The initial revenue once eHealth launched, already exceeded 40millions. With improving margin and weak AUD.

    If CMP can grow 10% in revenue each year. In 2020, revenue is about 64millions. => market cap of $214millions (SP of $1.2)

    If CMP can grow 20% in revenue each year. In 2020, revenue is about 100millions => market cap of $335 millions.(SP of $2)
 
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