DD on BLMH.c's fundamental undervaluation. At the end of June, Bloom Health Partners (CSE: BLMH) balance sheet was looking quite strong. As stated in the company’s fiscal Q3 report, it had reached fiscal YTD revenues of $24.9 million, bringing it just shy of its guidance of $25-$28 million. To boot, as of June 30, the company had $5.9 million cash on hand with receivables equaling $6.8 million.
In my opinion, these numbers show a drastic undervaluation of Bloom. At the moment, the company is presently valued at an MC of $7.15 million. This means the company is currently valued at the same amount of cash it currently has on hand. That is insane.
If we take the most conservative PS ratio for Bloom’s industry of 2.92, the company should be trading at a valuation of nearly $75 million at the moment. Once the company reports its fiscal yearly results next month, this number should increase to over $90 million.
When considering the more rational statistic of price to cash flow ratio, Bloom should be valued at at least $73.275 million based on its YTD EBITDA.
Hopefully the market will wake up to this undervaluation once Bloom releases its yearly earnings next month.
BLMH.c is currently trading at $.15.
https://ceo.ca/@businesswire/tokenscom-announces-fiscal-year-end-change