Ann: QUARTER: XRO: Quarterly Cashflow Report , page-7

2013 company valuations

108 Software companies compared , medium valuation metrics.

Enterprise value 2.75x rev and 14.0x ebitda , Cash to market value 21.1%

124 Internet Software and Services companies compared , medium valuation metrics

Enterprise value 2.71x rev and 15.1x ebitda , Cash to market value 15.6%

http://www.altrllc.com/uploads/CognientQ22013ValuationMultiplesUpdate.pdf

Xero company valuation 4.65B at $36.50

Annualized revenue based on last quarter 66m Aus

Enterprise value 67X REV

Ebitda - still burning cash so ZERO

Cash $221m

Cash to market value 4.7%

For the current valuation annual revenue needs to get up to 1.6B (using 2.75*) and EBITDA up to $305M ( using 14.5*)

Over 200,000 paying customers current , to get 1.6B in revenue they need around 5m paying customers.

Will they get there...