WOA - Charting, page-203

In the interests of practicality and fundamental research, you should be looking at the PROSPECTIVE EV/Revenue multiple...given they are a June year end, most analysts will have rolled forward their valuation to F23, as we are already more than half way through F22, with reasonable visibility, as you note, of where revenues sit for F22 - agree around $8-9m.

Based on the assumption of a Q4-21 annualised run rate of c$12m for F23 (conservatively IMO), and a current mkt cap of c$80m (at a sp of 56c and diluting for options that I think will be exercised, and for the 14m restricted shares which is EXTREMELY conservative), and a cash balance of c $30m post capital raise and no debt, gives you EV of around $53m, and an EV/Revenue multiple (F23) of just over 4x.

I'm not suggesting that is dirt cheap, particularly given the current rising interest rate environment and the crunching of multiples we seen over the past week or so, but let's at least compare apples with apples.

The short-term problem is that this company, along with other companies (360, NTO, amongst others) raised capital at an inflated prices pre-market correction - mostly insto's taking stock, as retail had the benefit of watching the sp tank in between the insto placement and the closing date for the SPP - and that needs to be digested (insto's either cutting losses or taking a LT view and adding to their positions at lower prices), and they also need to get some runs on the board re oat milk, lupin progress etc....and that will all take time.

You only have to look at the Oatley sp chart (not pretty) to see how the hype has come out of this stock. They are still operating at a loss, exacerbated by spending to grow and IPO costs....but this is what it takes to build a global franchise.

DYOR