Ann: Half Year Results - Presentation, page-29

Thanks for sharing. Would be nice if the chartist added a bit more commentary to go with the charts. Let's hope 5GN goes 'parabolic' soon.

Purely from an FA perspective the market has priced us at about 10.5x EV/EBITDA based on the 7% EBITDA forecast on $50m revenues for FY19 ($3.5m EBITDA). Enterprise value being $36.5m ($35m marketcap + $4.3m debt - $2.8m cash).

The more established players such as MNF group are sitting at 12.2x, while Over The Wire is sitting at about 16x EV/EBITDA - perhaps this is a fair valuation for 5GN for now or possibly a bit light? However, with just a few weeks left in the quarter I expect the 'ship to leak' and experience another move up in anticipation of the 4C, just like we saw in January this year, but this time testing the 52 week high of 83 cents. And assuming another great quarter after that, $1 a share may very well be a possibility, as another user suggested we would be trading at by EOFY.

Assuming we finish the financial year strong, the market should start to price in the $10m EBITDA forecast for FY20 (although ofcourse this is subject to change). At 12.2x EV/EBITDA it would give us a share price of $2.30 ($117m market cap) and at 16x we would be trading at $3.02 ($154m market cap). There is definitely a great potential return here for investors and Joe has said he wants to build a mid-cap company so even $3 a share would fall short in that respect.

Would appreciate any comments or corrections on my calculations.