Valuation
Using Stifel estimates:
P/E
2024 - 11.4
2025 – 10.4
EV/EBITDA
2024 – 3.6
2025 – 3.4
Using Canaccord estimates:
P/E
2024 – 12.3
2025 – 10.9
EV/EBITDA
2024 – 2.9
2025 – 2.5
I have seen companies in financial distress, one foot in the grave, trading at a higher multiple than NEO. I do believe that stock prices tend to swing away from intrinsic value on occasion. However, swings this extreme can’t last for very long. I understand the market doesn’t want to pay for growth in 2026/2027, but that doesn’t justify a trading price an order of magnitude below intrinsic value. One thing the market is not seeing is the deep lack of REE value-adding processing expertise outside of China (and to some extent Japan). NEO is the company with the most such expertise outside of these jurisdictions. Accessing NEO’s talent pool alone (notwithstanding all the real assets) is reason enough for someone to take a swing at this company.