EVS - success in the making...

nghomi,

you never know, maybe your mate thinks Envesta will be bought out by Tesco's, LOL :-)

Just done a very quick comparrison between IDN & EVS, using both companies last set of full year results.

IDN

Market Cap = £11.63M, ( 387'640'450 shares in issue * current bid price )
Turnover = £9.21M
pre tax = £258K
Net assets = £406K

EVS

Market Cap = £5.4M, ( 229'813'664 shares in issue * current bid price )
Turnover = £12.4M
pre tax -£173K
Net assets = £500K

Both companies should be using the same pe ratio to calcualte their current value as they are in the same sector.

We know from IDN's interim results that turnover was up 38% on last year at £6M with pre tax at £285K. If you double the numbers from the interims to give a very simplistic estimate for the full year then IDN would post turnover at about £12M with pre tax at about £600K. With IDN's current market cap at £11.63M then a £600K pre tax profit assumes a pe ratio of 20.

Looking at EVS, the recent trading statement said that the directors believe that the company will post pre tax profits of £750K. Turnover should be around the £18M mark, maybe a little higher, for the full year I would guess. So, agai using a pe ratio identical to IDN of 20 we can see that the market cap of Envesta should be around £14M, nearly 200% higher than currently with a shareprice of 6p a share. Oh, and the net assets of Envesta are most certainly going to be more than IDN's at a guess :-)

Which company would you rather be a shareholder in at this moment in time?

Answers on a post-card.

Danny Boy.