DSE 3.24% $3.29 dropsuite limited

DSE Takeover, page-15

  1. 2,051 Posts.
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    Sure we are unlikely to get to that valuation without a cornerstone investor. But if we assume a 20%NPAT from Revenue mid to long term and a PE ratio of 50 (for a tech company grwoing rapidly sounds reasonable), then a valuation of 10 x revenue is a safe bet. I agree its not a cheap buy right now but there is room fot SP growth provided they can keep ARR going up by more than 50% and be EBITDA positive. The company could realistically achieve 20m ARR in 2 years time and should be valued at $200m when this happens. More or less depending on growth rate.
 
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