Hi Benny - not exactly sure we're talking the same talk, but when you say 20% are you talking about the discount rate?? If so, it should come down once distribution agreements are in force.
The use of the term WACC is a "Finance 101" term, being the implied weighted average of debt and capital funding. In this instance, LBT doesn't have any debt so we're talking purely cost of capital. 16.5% pre-tax is extremely high I'd agree with you - particularly for companies like LBT that have significant tax and R&D concessions which act as tax shields, I would expect an after tax discount rate well below this, but hey they're pricing in risk (ie. uncertainties into their model).
Which ever way you slice and dice it, with some form of commitment in a sales agreement, this company is materially under-valued and on any good news could shoot quickly north.
Thanks
- Forums
- ASX - By Stock
- LBT
- In-house development, no more outsourcing
In-house development, no more outsourcing, page-4
-
- There are more pages in this discussion • 4 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add LBT (ASX) to my watchlist
|
|||||
Last
1.5¢ |
Change
-0.001(6.25%) |
Mkt cap ! $24.27M |
Open | High | Low | Value | Volume |
1.6¢ | 1.6¢ | 1.5¢ | $37.11K | 2.453M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
8 | 6902772 | 1.4¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.5¢ | 173400 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
8 | 6902772 | 0.014 |
4 | 1265385 | 0.013 |
2 | 240000 | 0.012 |
4 | 376500 | 0.011 |
2 | 550000 | 0.010 |
Price($) | Vol. | No. |
---|---|---|
0.015 | 173400 | 1 |
0.016 | 1133000 | 4 |
0.017 | 1475333 | 5 |
0.018 | 743336 | 5 |
0.019 | 400000 | 2 |
Last trade - 12.55pm 19/08/2024 (20 minute delay) ? |
Featured News
LBT (ASX) Chart |