It could be reasonable to trade on same multiple, but only if the multiple was reasonable prior and the growth outlook is the same. if expected growth is lower and/or prior multiple inflated, it may trade much lower.
Monthly EBIT got to 2m in Oct 2019, so maybe at its peak a run rate of 24m EBIT and around 17m NPAT. Whcih woukd have put it on a multiple of 69. Assuming same multiple for 4m fY20 profit is a market cap of 275, or a decline of 76.5% to 25c ler share. The question remains whether a multiple of 69 is reasonable and realistic then and now.
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It could be reasonable to trade on same multiple, but only if...
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