DW8 has grown revenue very fast the past 12 months similar to...

DW8 has grown revenue very fast the past 12 months similar to BET.

Both companies SP was at about x5 revenue run rate, however, BET has started to move up rapidly the past week.

Only a matter of time now until DW8 starts moving rapidly.

I have reviewed Morningstar's fair value estimate of 12c & they are using a trailing twelve month revenue multiple of x30.

Current MC = $111.06M - $12M cash = $99.06M / $10.228M TTM revenue = x9.7.

At 12c SP MC = $317.32M - $12M cash = $305.32M / $10.228M TTM revenue = x29.9.

The above is calculating FV using TTM revenue & not revenue run rate so is more accurate.

The lowest quarter in the current TTM is Q3 FY21 with only $768k revenue. This will drop off next quarter & the lowest quarter will then be Q4 FY21 with only $1.02M revenue.

Based on the above x30 TTM multiple for FV estimate the SP is as follows:

Current FV = 12c
After Q3 FY22 = 17.5c
After Q4 FY22 = 24c
After Q1 FY23 = 30c
After Q2 FY23 = 35c

The above SP estimates also fit timing wise with the round bottom chart pattern.

Today may possibly be pipped at close down to 4.1c but we should receive confirmation tomorrow that NDC has settled & $4.6M cash is in the bank. RSI is approaching oversold so sooner or later SP will bounce.