Ann: Former Intel Capital MD appointed & Company Update-XPE.AX, page-178

Start ups/spec stocks (especially tech start ups) are definitely a different beast - largely due to high expectations on growth rates - and their ability to often achieve some sizeable margins in the long term (once they get past the intensive R&D stages).

Have a read of this article - nicely summarizes some loose expectations:Tech start up valuations

At it's simplest form, this article shows you can expect valuations of between 5x-30x of current revenues. (Revenues here, others have been referring to profits). 5x would be lower quality tech start ups and 30x would be your high end serial entrepreneur, silicon valley, type tech start ups.

Considering Xped's board now containing two big names in the tech world, Xped's management team containing a serial entrepreneur (John Schulz) and ex-Qualcomm big wig JS, has been flirting with Intel, agreements with Telink, etc. etc. I'd say we'd be in the middle to high end of that 5-30x. Further, as the majority of our R&D is already completed, we should start achieving high margins much sooner than most start ups as we won't be immediately burdened with those heavy costs. Higher margins translate to a higher revenue multiple. No way we're at the top end, as that's saved for the creme de la creme startups - but I do reckon we'd be in the top half. Let's say 20x.

You then add on a premium for very aggressive growth rates, and apply a discount for how much of that growth rate is achieved due to the inflow of investor money. As we really have no idea on either of these items. Let's just leave it at a multiple of 'current' revenues.

SO with all of that - revenues of around $100mil at a 20x multiple would get you about a $2b valuation on this company. Assuming 50% EBIT margins - you're looking at $50m or so EBIT required....

So that's fairly in line with what other's have been saying. Point is though, you can see there are some seriously wide ranges out there and about a million factors that come into play when valuing early stage companies so who knows really.

Completely my bogus non-expert opinion, so no one rely on any of that!