How will the shift to positive EBITDA affect Biotricity's valuation and price targets?

Fundamental impact

The move from a loss‑making startup to a positive‑EBITDA business is a classic “value‑unlocking” catalyst for a high‑growth SaaS/TaaS firm. EBITDA now provides a cash‑flow proxy that can be benchmarked against publicly‑traded peers (e.g., Teladoc, Livongo, and other remote‑monitoring platforms) that trade in the 10‑15× 2024‑25 EBITDA range. Assuming Biotric5’s Q1 FY26 EBITDA of roughly $4.2 M (≈ $0.42 M per month) and a projected FY26 run‑rate of $20 M (based on the 3‑month trajectory), a 12× EBITDA multiple would imply a valuation of ≈ $240 M. At the current diluted share count of ~30 M, this translates to a share price of $8.00—a roughly 30‑40 % upside from today’s $6.00‑$6.30 level.

Price‑target revision & trading view

Given the new cash‑flow metric, analysts are likely to raise their price targets by 30‑45 % (e.g., from $7.00 to $9.50) as the discount to comparable EBITDA shrinks and the risk premium on a “loss‑producer” recedes. The market will price in the reduced downside risk, tighter spread to profitability, and the scalability narrative (AI‑driven workflow automation). On the technical side, the stock is currently holding the 200‑day moving average (~$6.10) and has formed a higher‑high/higher‑low pattern in the past two weeks, suggesting momentum is still on the upside. A breakout above the $7.00 resistance could trigger a short‑term rally toward the revised $9‑$9.5 target, while a breach below the $5.80 support would still leave room for a corrective bounce back to $7.00 as the fundamentals re‑price.

Actionable take‑away

• Long‑biased for traders with a medium‑term horizon: enter on pull‑backs near $6.50‑$6.80 and aim for $9.00‑$9.50 as the market digests the positive‑EBITDA milestone.
  
• Tight stop around $5.80 (the recent swing‑low) to protect against any unexpected macro or execution setbacks.
  
• Keep an eye on the next earnings release (Q2 FY26); a beat‑and‑extend on the EBITDA runway will further compress the multiple and could push the price even higher.