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Meatech
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==Valuation<ref name=":0" />== MeaTech is still in its early stages, hence without revenues or profits expected in the shorter term, it is hard to value. Furthermore, as MeaTech is the first listed cultured meat company, it has no direct peers. The closest listed peers are in the alternative protein segment, namely Beyond Meat, Oatly and Burcon Nutrascience. While none of these are expected to be profitable in the shorter term, MeaTech’s peers do generate revenues at present. Edison Investment Research notes that both Beyond Meat and Oatly have recently reduced their expectations for FY22 due to slower growth/consumer uptake and rising raw material costs. Based on consensus, Oatly is trading on a FY22e EV/sales multiple of c 3.0x and Beyond Meat is trading on c 5.5x. In Edison Investment Research's view, it would therefore not be unreasonable to assume that MeaTech could achieve a similar low-to-mid single-digit multiple once there is a track record of a few years of strong revenue growth. More meaningfully, Edison Investment Research notes that MeaTech’s net cash position was $30.6m at end H121. Given the free cash flow burn was $5.9m during the period, assuming no further acceleration in cash burn would suggest the company has enough cash for the next c 2.5 years. That said, the trend has clearly been an acceleration in cash burn, and the company’s plan to start the design of a pilot scale cultured chicken fat facility in Belgium during FY22 is likely to cause cash burn to accelerate further. {| class="wikitable" |+ Exhibit 10: Peer valuation |- ! !! Market cap (m) !! EV (m) !! EV/Sales (x) - 2021a !! EV/Sales (x) - 2022e !! EV/EBITDA (x) - 2021a !! EV/EBITDA (x) - 2022e |- | Oatly|| $3,178|| $2,782|| 4.4|| 3.0|| (21.6)|| (21.2) |- | Beyond Meat|| $2,702 || $3,099|| 6.7|| 5.3|| (36.1)|| (24.1) |- | Burcon Nutrascience || C$114 || C$105|| 1047.9|| 588.7|| (30.5)|| (23.6) |- | Peer group average || || || 353.0 || 199.0 || (29.4)|| (23.0) |- | MeaTech || US$83 || US$52|| N/A|| N/A || N/A|| N/A |- | colspan=7 | Source: Refinitiv, Edison Investment Research. Note: Priced at 10 March 2022. |}
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