If we assume Tesserent turn a profit this quarter and their forecasted annual revenue does indeed reach ~$40M on a monthly basis, a ballpark P/E could be calculated from the likely earnings. If TNT earned say $5M, the P/E would be ~8.8 (SP=8.6c, 512M shares). Obviously, this figure is well below the ASX 200 current average of 12.4. I also did a quick check of the P/E's of cyber security stocks that are cash positive (mostly USA based) from data in the "Simply Wall St" app ...
Generally the P/E's are relatively high. Clearly, if TNT actually had a P/E=8.8, it would be very low in comparison, and would be significantly undervalued IMO. If TNT's earnings instead was $2M off $40M revenue, the P/E would be 22.0, and it would be at the bottom end of the list above. It could be argued that if TNT's annual earnings at some point in the next few months were to exceed $2M and the SP stayed around 8.6c, the stock would become undervalued w.r.t. its P/E. I just see a huge upside to TNT's current valuation. I topped up my holding in the recent dip at 5.6c, and now regret not buying more. All the above IMHO, DYOR
TNT Price at posting:
8.6¢ Sentiment: Buy Disclosure: Held
