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NightWatchman

1,412 Posts.

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22/09/15

13:11

Post #: 16036274
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Originally posted by NightWatchman ↑

I was using a EV/EBITDA multiple to keep it on the conservative side given the way DVI has traded in the past. Best not to get ahead of ourselves just yet.

However having said that, it is probably more appropriate to value this business on a EV/Revenue multiple given the way a lot of these other tech companies are trading at ht moment. You don't have to look too much further than IPP or ICQ to see that this could easily be a whole lot higher than 3.1c.

For instance IPP currently trading at an EV/Rev of 21x and ICQ trading at 36x.

iBuyNew + BYOjet had combined revenue of ~$9m, giving DVI a revenue run rate of ~$5m (assuming they convert the con note into equity which they have stated they will) - currently putting DVI on a EV/REV multiple of a meager ~2.2x! -

Like i've been saying for a while, there's plenty of value here. The market will wake up to it eventually as long as the company continues to perform the way they did in the last half.

Hope this helped.

Cheers,
NW.

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Sorry EV/Rev would be ~4x not 2.2x - still massively cheaper than the majority of players in the tech space at the moment.

IBN Price at posting: 3.3¢ Sentiment: Buy Disclosure: Held
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