I’ve run some very crude figures. The company has stated it expects to process $1bn in payments this financial year, ~10x that of last FY. We can calculate that the company earns between 1-2% on payments processed, so revenue should be between $10m-$20m for this FY, a fair bit of ground to make up from here.
Let’s project into the future. Capricorns customers purchase around $3.2bn in parts from suppliers annually.
Agrichain have $2.2bn worth of grain “at any given time”. I’m unsure how many times this will be turned over but to be conservative, let’s say twice, so $4.4bn.
Approx $1bn in flows will be processed annually from Carpet Court.
$7.6bn in flows from the above, let’s say an average of 1.5% earned is about $114m in revenue.
Using a P/S ratio with a multiplier of 5, the SP would be around 13.5c. In saying that, the higher the revenue (and therefore profit), the higher the multiplier is likely to be. A multiplier of 10 would see the SP at 27c.
Bear in mind however, this is using figures recently released from the company and doesn’t take into account further potentially substantial revenue streams from Capricorn, Agrichain, eBev, other verticals, international expansion and so on.
All of this will take a number of years to eventuate, but given the company’s stated goal of processing $1bn in payments this financial year, it seems it may take off sooner rather than later.
As I said above, these are crude figures, are there any numbers gurus who can check my workings?
@Alabamawhorley. 27c Embarrassing and 100% drivel as you have stated Agri Chain lol
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