ELVA has performed really well recently as the company starts trading with a more senior Nasdaq listing, and it is now trading at 33x times' Forward EV/EBITDA, with limited current earnings. ELVA also has limited sales, however, based on consensus estimates, sales are expected to increase sharply in the next few years, above 50% on average, as the company’s products start commercializing. The balance sheet is okay, with net debt of $18M, but ELVA is still burning cash and issuing shares to raise money (dilution risks). The company’s historical financials are not that interesting, but as noted growth is expected to accelerate. ELVA also operates in the EV batteries industry – a secular tailwind sector. Overall, an investment in ELVA at this stage is similar to a venture capital type of investment: the outlook is promising but is still far into the future, so investors should size the positions appropriately. There is also significant size risk here and it clearly is not a stock for conservative investors and should be considered very speculative.
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