The most undervalued roll-up stock on the ASX

ZNT has got to be the cheapest roll up play in the market right now. FY18 guidance is for $13.5M EBITDA and the recent acquisitions should add a further run rate of circa $2.5M EBITDA. That's a total of $16M run rate EBITDA. The company should deploy a further $20M or more from the recent cap raise at around 5x which should add another $4M EBITDA before the end of FY18. Therefore as a base case start for FY19 we should have a diversified national healthcare services company with $20M EBITDA and growing organically at 5-10% pa. The current market cap is $94M. I estimate NPAT run rate based on FY19 assumptions above to be circa $11M. That's an EPS of 15 cents. The stock should trade on at least 15x PE multiple. Therefore ZNT is worth at least $2.25 next year. With only 2 brokers covering the stock it is still very much under the radar......