for what it's worth, page-3

Montgomery uses a formula to value companies which, amongst other factors, incorporates ROE & % of earnings reinvested when identiyfing the intrinsic value.

Montgomery is saying that IF Biota could maintain an ROE of 49.5%, and reinvest near to 100% back into the business, then they would be worth $8.81.

Obviously, Biota are obviously amassing a pile of cash, and it will come down to the capital allocation ability of management, to invest into projects that achieve strong ROI.