DW8 Growth, page-2713

Remember when some were concerned SP bottomed at 4.1c & SP didn't rise following positive announcements?

The revenue multiple was x34 during the lows based on Q1 FY2021 figures & in the low x20's after Q2 FY2021 figures when I mentioned it was undervalued.

Based on Q2 FY2021 revenue of $712k x 4 = $2.848M annual revenue.

Current MC of about $109.8M - $9M cash = $100.8M / $2.848M = x35.4 multiple.

DW8 was trading in the x40-44 multiple range prior to the downwards pressure caused be B2B delay & unlisted options.

$2.848M annual revenue x 40-44 multiple = $113.9-$125.3M + $9M cash = $122.9-$134.3M MC or 7.4-8.1c SP.

There will be a premium on the above when B2B is soft & hard launched as the above is only for the logistics component of the business.

Somewhere in the order of 50% premium seems fair = 11.1-12.1c SP & will be at x61-67 revenue multiple based on Q2 FY2021 figures.

When 4C Q3 FY2021 figures are released circa $1M x 4 = $4M annual revenue run rate the multiple will be x44 again. So may have a small retrace to 9-10c until the Q3 FY2021 4C is released. At 11.1-12.1c SP MC will be circa $184.7-201.3M.

Possible SP targets thereafter:
Q4 FY2021 - $1.5M revenue x 4 = $6M x 40-44 = $240-$264M + $6M* cash = $246-$270M MC or 14.8-16.2c SP by end July 2021
Q1 FY2022 - $2.2M revenue x 4 = $8.8M x 40-44 = $352-$387.2M + $5M cash = $357-$392.2M MC or 21.5-23.6c SP by end October 2021
*$1.5M additional cash burn allowance for B2B launch incentives

Appears SP will end the year at least 20c with the possibility of being 30c.