https://www.raasgroup.com/ Updated research report on commsgroup Valuation of $0.18/share or $70m market cap fully-diluted Both a DCF and peer multiple valuation are suitable for CCG. From a peer multiple perspective using FY23 consensus estimates CCG is trading at a 6% discount to the average listed (profitable) peers (6.4x EV/EBITDA) despite little Vodafone revenue but the associated start-up costs, and little restructuring benefits. Recent M&A multiples (8.1x EV/EBITDA) would imply a share price of $0.091/share. From a DCF perspective, CCG is profitable and has transparency around expected divisional revenue growth rates, gross margins, and cost growth. Our DCF has increased from $0.16/share to $0.18/share, driven by the cost reductions, offset somewhat by some longer-term cost assumptions. Our DCF assumes stable gross margins, growth in Microsoft Teams phone connections (including Vodafone). As a sense check our DCF implies an FY25 PER of 14.0x and EV/EBITDA of 7.7x based on our estimates.
CCG Price at posting:
7.0¢ Sentiment: Buy Disclosure: Held
