Disclosure, I hold this stock.
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.
TLDR: Buy Altium. It will be huge.
Disclosure, I hold this stock. Altium is undervalued...
Add ALU (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$68.25 |
Change
0.020(0.03%) |
Mkt cap ! $9.004B | |||
| Open | High | Low | Value | Volume |
| $68.26 | $68.27 | $68.22 | $22.44M | 328.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 133 | $68.24 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $68.25 | 81170 | 2 |
View Market Depth
| Last trade - 16.10pm 11/07/2024 (20 minute delay) ? |
| ALU (ASX) Chart |