2021 Price Target- Using CEO's median estimates of 145 mil revenue and 25 mil EBITA. Current market Cap +/- 300 mil and EV +/- 342 mil. Fiscal 2021 EPS 0.10 (my estimate)
-EV/EBITA ratio of 13.7 times is healthy.
Growing tech companies are difficult to value to say the least. To calculate a price target i am using a combination of:
1. Revenue/share x 4
2. EBITA/share x 16
3. EPS x 32
My multiples are open to discussion/critism but I have a price target 3.90. I am a little old fashion and probably put a little more weight on EPS than most for tech companies.
Target price is not taking into account the 0.83 cents/share cash on the balance sheet. An acqusition here can change things dramatically and the anticipation of increased growth can increase the multiples.
My figures are definately open to discussion as I am posting this to see what others think.
GLTA