M7T Metrics

Just had a look at PME's FY2020 PE multiple - trading on 136 times. From the Morgans report if M7T achieves their target in 2023 of $36M revenue and an eps of 6.4 cents that's an $8.70 share price if it trades on the same multiple as PME. Let's be more realistic - in FY 22 Morgans expects M7T to earn $28M and and eps of 2.1 cents at share so at the current price of $1.28 M7T is trading on a 18 month forward multiple of 60 times. Sweet spot in FY 23 is predicted EBIT margins at 42% and NPAT at 41% i.e. soaking up tax losses. Using the same 60x multiple at 6.4 cents in FY 2023 that equates to a share $3.84 share price - would like to think that's the base case. So to state the obvious it's all about building the pipeline and locking down long term contracts now so investors can see the pathway to the $36M revenue in 2023. $36M is not that far from PME's $57M revenue in FY2020 , affording them a market capitalization of $3.1B . Australian Investors Podcast Interview with Dr Sam Hupert, the future of medical imaging, is a must listen to further one's understanding of the field.. He started PME with Anthony Hall back in 1984. Fascinating journey that I missed out on but hoping M7T will deliver a great journey as well with Mike Lampron.