Just one remark: sales does not equal earnings. Earnings is EBIDTA or EBIT, which is basically profit before Interest, Tax and Depreciation. The stock only trades at 1 * sales right now, which is low. But in terms of earnings, it is valued ok - there have been no earnings for the full year so far - ever.
If the full-year profit (earnings) for this year turns out to be - say - 1 million AUD, the stock would be trading at an earnings multiple of ~30 - which is an OK valuation. Sometimes stocks that have a huge potential for growth trade at even higher earning-multiples: but the market really has to believe the potential is realistically there.
So not to contradict my previous statement: given the sales and the potential that I realistically see in the stock (and red chip see too), I think it is undervalued. But the truth is that we have had no full-year earnings yet.
Just one remark: sales does not equal earnings. Earnings is...
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Last
4.1¢ |
Change
-0.001(2.38%) |
Mkt cap ! $35.52M | |||
| Open | High | Low | Value | Volume |
| 4.3¢ | 4.5¢ | 4.1¢ | $76.57K | 1.787M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 230525 | 4.1¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 4.2¢ | 238000 | 1 |
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| Last trade - 15.44pm 28/06/2024 (20 minute delay) ? |
| DCC (ASX) Chart |