Nuix Underlying Absolute Lemon

Looks like the IPO managers managed to offload Nuix at an incredible price relative to its absolute value.

Underlying company looks good to me, but as Warren Buffet says: Price is what you pay, value is what you get.

It looks like subscribers certainly paid a very premium price relative to the value of the business.

Based on management's revised FY21 forecasts:
Underlying growth has slowed right down to 10-15%, yet the underlying business is being sold at:
*a revenue multiple of 7 times
*EBITDA multiple of 20 times
* Adjusted Net Profit multiple of 62 times.

All these metrics seem too high relative to potential growth of 10-15% p.a

Either FY22 has to prove that growth rates can be sped up, or else I think the share price will continue to trend down until the share price approaches the underlying value of the company.

Absolute lemon, because IPO share holders where sold a decent company but at such a premium that their capital wealth will be inhibited for many years to come due to the price paid.

One for the watchlists.