Altium is undervalued significantly. Let me explain. Keep in mind, all these values are in USD. For FY22, Altium stated that they would be in the top-end of their guidance ~18%+. This means we are looking at an EBITDA of $77M USD, which is $107M AUD.
Let's take a look at WTC. They are expecting around $270M EBITDA. Now WTC will have $100M CapEx unlike ALU.
So looking at FCF, WTC is probably expecting $170M, with revenues growing around 20-25% (which is partly fuelled by acquisitions).
WTC is valued at $18B while Altium is at $5B. I estimate it will take around 2-3 years for Altium to reach WiseTech's current level based on their existing growth rate and the massive adoption of Altium 365. That's when operating leverage starts hitting. So in 2-3 years that is a return of 330%, annualized at around 60% IRR.
