MYD Valuation discussion

Looks like MYD has now appropriately re-rated within a multiples band (EV/next 12 month revenue) that is in line with comparison companies per chart below (MYD is black line, chart from TIKR.com).

I have collated what i think are interesting metrics to keep an eye on in the table below. Note the data is since 2018 and these companies are at various stages of maturity and as such it isnt trying to display whether MYD is a better investment than others.


note data is derived from TIKR.com.

Using a discounted revenue model out to FY2025 i currently value MYD at share price of $1.13 and have a risk adjusted cost base target of $0.81. Model parameters were 20% YoY revenue growth rate, 12% discount rate, and a terminal exit multiple of x3 revenue. Risk adjusted discount rate was 25% using CAPM values of: Risk Free rate - 1% (~average yield of 5yr Aus bond for last 5yr), beta - 2, Comparison asset return - 13 % (WAM microcap annual return)

I chose not to use a DCF as MYD is currently not profitable and i did not want to preempt decisions of management that may make longer term growth a priority over short term profitability.

NOTE: this is not investment advice, i am a novice investor and errors in calculations and application of concepts may be present. If you think this approach could be useful i would suggest doing your own research.