Replies to post #157725 on Value Microcaps Motherboard

[abh3vt]

Hweb, on DRAD did management give any forecast of where they expect GM to be in the next year or so?

I hear you about the balance sheet cash, but if you want to use it in that way in determining EV, then the better divider is adjusted EBITDA....that's how an acquirer of the company would primarily view its relative cheapness.


YTD, I calculated DRAD's adjusted EBITDA (excluding changes in working capital and backing out the one time gains) as still negative. In Q3, they finally showed some positive EBITDA of roughly 1MM. Annualizing that would give you an EV/EBITDA ratio of approx 10x. Thats not too bad, but its not as cheap as you might think for having all that cash on its books.

I wish you all the best with it. If they can show more sustained top line growth I may get a bit more excited.