$1 Club, page-10413

Ryzie,

What does this show us? Your dividing shares on offer by the Sales (gives you the 25 multiple)
And then next you are multiplying the multiple by the sales, which would just bring you back to the shares on offer total.

So whatever stock, price, sales amount you do this on the Market Cap will always equal the Shares on offer total?

Wouldn't it make more sense to work out the multiple for other companies in sector as at last reporting date, and also on IOU and then base the market Cap and expected Share price on this looking forwards.

EG.
last report date IOU had
$3.3m receipts for H1 2021
SOI of 450m
(so annualised this would be $13.2m receipts)
Uusing your calc coming out to a multiple of 34.

Then if we assume the $17.6m revenue instead that you've worked out, this would give us Market Cap of $600m gives us a share price of $1.33.

Next step would be to look at other businesses in this sector (SZL, Z1P, APT etc) and do the same and then take a view on if IOU multiple is too high or low and expecting a re-rate

Or am I overthinking this, and missing something from what you posted?, I'm normally all on board with what you post, this just didn't click with me and curious as to your thinking on this