Goes without saying paharvey. What need to be looked at is EV....

Goes without saying paharvey. What need to be looked at is EV. Avanti's equity is worth around $400M AUD with total non current debt of $342M AUD. Giving an EV of roughly $742M AUD. OpEx is higher than revenue so there is no EBITDA to capitalise.

Doing the same for NWT assume ECA debt of $400M and current market cap of around $200M - NWT EV is roughly $140M less than Avaniti.

That said even NWT telelport's turnover is similar to Avanti total atm, and its done at a profit.

For SP valuation purposes figure out what you think EV should be (ie what multple of EBITDA)then take off debt and divide by number of shares (dilute as expected)

Throw around some assumptions. If J1 has a mature EBITDA of $100M whats its worth on an EV basis? (and by extension on a per share basis). Or if it reaches $150M of EBITDA ($3B/15 years times 75%)? I would suggest that any EV multiples used would on one hand need to be mindful as it is a first satellite so may need some conservatism; though I think that this is outweighed by any premium that would need to be added for growth. SatMex got 9.7 X EBITDA recently because of the region, growth potential and slots. I suggest an operational Jabiru 1 should see NWT between 7.5 to 10 times.

You can run these figures and use in conjunction with PE ratio valuations (take EBIDTA down to NP - say 45% margins; apply a higher multiple 10-15 times).

There's a lot of moving parts that have to come together but its pretty easy to see the potential for SP appreciation