EML $5 Party :-), page-141

Just curious, on what metric/s do you think it's overvalued? Some simple calcs below (once again, someone correct me if I'm wrong):

EML FY20 NPATA is predicted to be in the range of 27.5m-30.5m (from Feb 2020 Half Yearly report). Let's say its 27.5m due to coronavirus.

PFS FY20 forecasted EBITDA of 12m pounds (~$AUD20m). I don't know the NPAT/NPATA to EBITDA ratio here. Let's just say Net Profit its 25% of EBITDA (=AUD$5m).

That's total combined entity Net Profit of AUD$32.5m for FY21 (very rough assumptions here), not including any forecast growth rates for these two businesses.

EML has 359.7m shares on issue x $3.18 share price = 1.15B market cap

That's a PE ratio of 1.15B/32.5m = ~35 (for FY21)

There will apparently be synergy savings for FY22, which aren't included in the above calcs. And as mentioned, no forecast growth rates are included in this calc.

Considering the (non)profitability of EML's peers on the ASX, and also the fact that EML has cash in the bank, diversified revenue streams, pilot programmes in play, and eyes on future acquisitions, I wouldn't say its overvalued, especially for a growth/fintech stock.