Given the market for all NVM is $60bill US ($100b aus) and our royalty revenue is 1.5-3% (let's say 2%)......
For 100m recurring revenues you are expecting us to have secured 5% of the entire NVM market by the end of next year. This would require the discrete memory to be sorted and to be moving to fab at an absolute minimum. Personally I think those numbers are unrealistic within a year, but maybe in 2-3.
just using Wikipedia to search fabs (incredibly oversimplified because I am not assessng individual chip capacity or chip types) there are 500 fabs. You would think a 10% share would require at least 40 fabs on board.
I do think a higher multiple is warranted for this kind of stock when you see those used for companies such as nan where expectation of future market dominance is built in.
this is a learning platform for me so please feel free to correct any assumptions in my above workings, understanding that they are extremely rudimentary.
apologies for any formatting or typo issues as I'm using my phone which HC does not seem to enjoy.
WBT Price at posting:
$2.28 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)