This whole ex-growth narrative is a bit of nonsense in my view. The ~10 EV/EBITDA clearly allows for headroom to EPSg in the near term while the pipeline for contract wins elongates (Covid / BREXIT disruption putting off full infrastructure upgrades for their potential clients). The average for the local tech sector is around 20x last time I checked.
The absurdity of the market at present is that high momentum stocks trade on valuations which far exceed even bullish long term EPSg assumptions, using a DCF approach, while stocks like BVS trade well below fair value if you apply a long term lens.
In saying this, it is the ideal environment for identifying opportunities to generate future returns if you believe markets will eventually again trade on valuation based fundamentals in the future.
Looking forward to the announcement either way. Don't expect BVS to be listed for too long if the share price lingers down here.
BVS Price at posting:
$2.80 Sentiment: Buy Disclosure: Held
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