DSK valuation, page-10

Just thought of another interested tidbit relating to the company valuation. Cash was circa $35m at the last update. NPAT for this half is going to be around $28m. This. means total cash as of 30 June 2021 was around $60m. Even at the all time high close of $4.00, around 24% of the market cap is cash held by the company! If one takes out the cash, the enterprise value is $190m... which equates to a PE of FY21 of 6.8. How ridiculous.

As established in earlier discussions, the market is pricing the stock as if FY21 performance was a one off due to covid tailwinds. If this is true, with the latest lockdowns in Australia, it stands to reason that FY22 performance (atleast for the first half) will get a boost due to lockdowns. This being the case, it's highly likely that even if one was to ignore the expanded store footprint, FY22 NPAT will be comparable to FY21. When the brokers revise the FY22 earnings upwards, it should result in a healthy rise in the target SP.