LBT Share Price Value?, page-55

It's too hard to guess where our valuation for 2018 will be... Benny your $5 valuation may be too low, high, or it may be spot on... but definitely achievable based on current strategy.

In 2018 woundvue will be as valuable as LBT is today; it has been engineeered to utilise the same LBT FDA approved algorithms and Artificial Intelligence Platform which will underpin Woundvue's chronic wound diagnostic analytics

Woundvue (APAS Mach II) ) has already processed roughly 4,000-6,000 from Royal Adelaide and surrounds... or roughly half the 10,000 threshold for APAS Mach I clinical trial validation - its use cases is already being validated across different medical specialities and imagery types - I believe radiology (MRI, ,X-ray, CT scans) and ophthalmology (intense Eye Scans diagnostic) is logically next to be APAS'ed.

Back to the near term (next few weeks/months) a lot depends on the amount of our upfront distribution deal payment (Microstreak got ~$20m, APAS innovation much more complex and lucrative than micro streak - should get a lot more):

FY 2016 Valuation (actual)

Actual EPS $0.031 x 39 = $1.20

FY2017 Valuation (forecast)

$20m upfront ($10m net after tax and annual LBT costs) = $.09 x 39 = $3.51
$25m upfront ($15m net profit) = $0.11 EPS x 39 = $4.29
$30m upfront ($10m net profit) = $0.14 EPS x 39 = $5.46

FY2018 and beyond

If they get a good global partner

20% market shares

27,000 current labs
2 average potential units per lab
54,000 potential unit sales
Global partner labs = 10,800 APAS units deployed to existing Global partner labs

Unit Price = $150,000

Sales value = $1.62 billion

Annual license fees

LBT license/service fees 10% (nett) of initial sales value
Annual net profit = $32.4m
EPS = $0.285
PE = 39
Value = $11.11
MC = $1.26 billion valuation

Wild card

APAS can be deployed to 'new frontier' labs = ie the 27,000 labs only covers 1 billion of the worlds 6 billion developed population.

A solar powered APAS can be a lab or even a clinic - in itself if you get my idea? It can be dropped into a remote population of 20,000 - 100,000 and help diagnose issues/infections and provide treatment to populations who can't afford a full time doctor a microbiologist and a lab...

I.e. APAS can sit indenpendently of any healthcare system infrastructure... it can add immeasurable value to human society.... that's why I find it so hard to value LBT - I feel like Brent should give a TED talk aregarding the potential of APAS and LBT... but then again, I much rather we sit within the ASX 200 league first and foremost; our future value proposition warrants it