tox valuation

From an FA point of view, what is the goal for this one?

As a straight base case we should lock in:

$3m profit (plus several years worth of accumlated tax losses in there). Base case PE of 12. Bugger all debt gives a fully diluted value of $36m / 530m = 6.8c.

Add in the upside for the plant expansion of say $3m a year (being conservative) and get a valuation of close to 14c.

Remember that tox is a skin and bones operation at the moment and so using very conservative numbers is wise as costs are harder to contain as the operation becomes more profitable.

Thoughts / feedback welcome.

hatless