valuation between 4.0c - 4.8c

The recent half year result gave some helpful numbers to value DIG, which I have valued at between 4.0 - 4.8c, based on:

Number of shares = 762m (currently there are 457m but I'm assuming the proposed rights issue will be based on 2 new shares for every 3 held at 2c, which will raise about $6m).

Net debt = $0 (the proposed rights issue will clear all debt and utilise most of remaining cash).

FY12 EBITDA = $3.8m (the company stated that it's 'run-rate' by June will be between $3.75m - $4m).

FY12 NPAT = $2.5m

PE of 15x = 15 x ($2.5m / 762m shares) = 4.8c
EV/EBITDA of 8.0x = 8 x $3.8m / 762m shares = 4.0c

Final comment - It has been a bit frustrating the time it has taken DIG/COM to finalise its resturturing and it appears the upcoming rights issue is the last bit of tidying up. The largest shareholder, Co-Investor, obviously likes the growth profile of the company as it has bought an additional 2m shares on market over the past couple of days.