Night that is a complete furphy and perhaps you need to bone up on your financial maths!
The share price is EPS X PE. There are no earnings for a loss making company.
Therefore, by definition , the share price cannot be a true reflection of the enterprise value of a company.
We could use an adjusted NPV but we have no idea of future cash flows and that is why so many here focus on that metric.
But I would suggest that for any growth stock that will always undervalue the company. Eg Afterpay or Split it are two examples.
In the circumstances, as no financial metric is available to value a start up, you would have to value SYT by some other methodology.
Such Appropriate methodology might be the assessment of the value of current contracts plus NPV of the cost of development of the IP + premium.
To assist, as Comptel cost Nokia 320m and if you think that the “stack” is all SYT have then 320m less the NPV of the 17 m pa over the life of the asset would be the value of SYT stack tech.
I could do the math but I would need to charge a fee.
As you can see from the above discussion, to value SYT, you at the minimum need to have an understanding of the value of technology.
If you have no idea of the value of the tech, then by any metric you cannot value the company and so I believe my comments are 100% incorrect IMO.
To put it more simply for you, if Westfarmers were happy to pay a 50% premium to the previous days closing price for Lynas, how accurate is the market at pricing enterprise value?
QED!
SYT Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
