Empower Clinics Inc EPWCF

Bringing back the Empower Math

[HTNYC1]

I posted this a few days ago based on a few things the CEO said but worth bringing back here - sourced from prior CEO interviews and the Empower Investor Deck:

- 4000 per day testing capability but can increase it quite easily
- ~$100 CAD revenue per test but potentially lower for bulk orders
- Currently valued at 6x forward earnings multiplier, Teladoc et al get ~40
- Current valuation ~$56m CAD as per current stock price

Discounting the rest of the business entirely and setting the ave. revenue per test at $100 CAD and keeping the multiplier at 6x you get the following over the next 12 months:

10% lab utilization: $14.4m rev @ an $86.4m valuation (1.5x current share price fully diluted)
25% lab utilization: $36m rev @ a $216m valuation (4x current share price fully diluted)
50% lab utilization: $72m rev @ a $416m valuation (8x current share price fully diluted)
100% lab utilization $144m rev @ an $832m valuation (15x current share price fully diluted)

Put simply - if they do nothing except sell and process 400 tests a day in 2021 this business is 50% undervalued

I'm obviously being overly simplistic here and leaving out a lot but suffice to say I'll be buying more first thing on Monday.

GLTA