if they do achieve $45m ebitda in FY20, that would give them a...

if they do achieve $45m ebitda in FY20, that would give them a current ev/ebitda multiple of 24x. Not sure who to compare EML to because there really isn’t a similar global payments processor, issuer, programme manager that’s not predominantly credit focused - but the big payment schemes that don’t play heavily in the credit market (visa,MasterCard) trade around 25x - 31x and Fiserv Trades at 38x and PayPal 30x. The big difference is ebitda growth. MasterCard etc probably grow ebitda 10% p.a but EML is consistently 30% plus and would be 55% if they did in fact achieve $45m in FY20. All without cyclical exposure.

Considering the return you get on cash or bonds and the risky cyclical nature of other growth companies trading at much higher multiples (credit focused like afterpay and Isignthis), I would be very happy with ebitda growth of 30% in FY20 and FY21. That would imply ebitda $38m in FY20 and $49m in FY21. If they add a modest dividend to that - it’s a standout.