Ann: Praemium's Australian SMA surpasses $3 billion-PPS.AX, page-21

PPS has been a TA-based trade for me. The recent pullback in price and the linkage to Brexit has had me looking more closely at the fundamentals. I find PPS interesting for several reasons:

1. Its a growth story but its been range bound since early last year (26-38c)
2. Its a SAAS fintech business with a highly scalable model so it has growth potential
3. On its fundamentals it seems overvalued even after pulling back to < 30c:

Fully diluted EV = 405M shares x 0.29/share = $117.5M mcap - $11M cash = $106.5M
EBITDA = 2 x $1.8M (Dec 2015 HY result) = $3.6M

EV/EBITDA = 30 = expensive

NPAT = 2 x $1.3M = $2.6M => EPS (fully diluted) = 0.5c/29c = 1.7%

Its balance sheet is sound - $11.5M cash in the bank, positive cashflow & no debt.

So the SP (normally being 12 months forward looking) must imply some decent growth expectation baked in. FA isn't my strong suit so maybe I'm overlooking something here - could the price reflect a possible TO premium either from a fund manager or a larger IT company?

Cheers, Sharks.