| The Value of Production came in at € 9.47 million, up 32.8% on the € 7.13 million recorded at the end of 2021, and slightly down on the € 10.95 million estimated in our previous report. EBITDA amounted to € 1.87 million, up 28.5% on the value recorded at the end of the previous year (€ 1.46 million), and below our expectation of € 2.40 million. Also reported is an EBITDA Margin of 19.8% on the Value of Production, slightly down on the value of 20.4% in FY21A and our estimate of 21.9%. EBIT amounted to € 1.67 million (€ 1.34 million in 2021), compared to our estimate of € 2.30 million. Net Income stands at € 1.13 million (€ 0.98 million in 2021), slightly down on the € 1.70 million of our previous estimate. In light of the results published in the Annual Report for FY22A, we confirm our estimates for both the current year and the coming years. In particular, we confirm an estimated FY23E Value of Production equal to € 15.15 million, and an EBITDA equal to € 3.45 million, corresponding to a margin of 22.8%. In the following years, we expect the Value of Production to rise to € 27.60 million (CAGR 22Y-25E: 42.9%) in FY25E, with EBITDA equal to € 6.85 million (corresponding to a margin of 24.8%), up from € 1.87 million in FY22A (corresponding to an EBITDA Margin of 19.8%). Given the lack of comparable companies, we conducted our valuation of the equity value of Deodato Arte based on the DCF method alone. The DCF method (including, for prudential purposes, a specific risk of 2.5% in the calculation of the WACC) returned an equity value of € 53.4 million. The target price is € 1.70, BUY rating, and MEDIUM risk. |