Avid Bioservices Inc (CDMO)

[stockaxe]

Depends how you think about value. If the price per share represents the present value of future cash flows (as market theory would say), it is not difficult to get a price above here when you consider a fully built out Avid will have $270mm of very sticky revenue, probably further growth through new facilities, and EBITDA margins above low 30s%. Industry multiples are north of 20x EBITDA for slower growing businesses in the space, and discount rates are incredibly low. Even if you use 9% as a discount rate and assume they achieve $270mm in the next 4 years, I think you will like that math even vs. today's price.