Value Target for RSH $1.50, page-8

Reading RSH goals for the Australian market on page 8 of the Jan 20 presentation, I see significant share price upside from Australia alone....the investor call articulated that via big pharma + other industry support, the company is working towards the product/service endorsement from the 1000 Respiratory physicians, who the rest of the respiratory industry generally follows.

Page 8 states"Our goal is to secure 3 patients per week per physician (<0.5% of patients) = 150k patients annualized."

Using RSH numbers I would apply a 10x multiple to the $16m of app subscription fees ($160m), then assume a 30% Ebitda margin for the device (0.3x$15m = 4.5m) and use a 10x Ebitda multiple for the device ($45m) to give a $205m valuation for Australia alone.

I would expect a valuation premium on this, due to the ability to replicate overseas, but even without it Australia alone gives us potential 5x share price upside ($205m vs $40m current market cap)