EOS 1.76% $1.40 electro optic systems holdings limited

Fair value/ Entry price?, page-5

  1. 765 Posts.
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    From the last announcement:
    "For the 12 months ending 31 December 2020, EOS has previously offered guidancethat EBIT would be around $28 million, or 45% above 2019 levels. This figure is nowrevised to $31 million based on a 10% uplift from EMS contribution to EBIT”

    So profit for next year is going to be around $31m. Applying a pe of 20 we come to market cap of $620m which is roughly where we are now. So current price is a good minimum price for what we should be next year.

    Growth stocks can be afforded a pe of up to 40 which means next year (as top end valuation) we could possibly sit on a market cap of $1.2b or around $12.

    If we get any more positive news on the space front ofcourse we could easily be valued more.

    Current global situation with conflicts and space activity gives demand for both of EOS products.

    A profit making small cap which can give a confident guidance for next year is rare and pretty impressive.

    AIMO. Hope that helps. Have a great weekend
 
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