My good friend at Chat GPT values TCN at 4x to 10x revenue as per below.
20c to 50c. Id be happy with any price above 10c.
It comes down to how Techniche EV can grow and their other initiatives.
Revenue over $10M and 209 Million shares on issue.
Determining the valuation of a software business involves considering various factors beyond just the revenue multiple. While revenue is a critical metric, other aspects such as profit margins, growth rate, customer acquisition cost, market conditions, and the competitive landscape also play a significant role in valuation.
That being said, in the software industry, valuation multiples are often based on the company's revenue. The specific multiple can vary based on factors like the company's size, growth potential, profitability, and market trends. Common valuation multiples for software businesses might range from 4x to 10x or more of annual revenue.
Here's a simplified example:
Low-End Multiple (Conservative): If the software business is relatively stable and has a steady growth rate, it might be valued at a lower multiple, such as 4x to 6x revenue.
Mid-Range Multiple (Moderate Growth): A business with strong growth potential, positive cash flow, and a competitive edge might command a valuation in the mid-range, say 7x to 8x revenue.
High-End Multiple (High Growth and Profitability): If the software business is experiencing rapid growth, has high-profit margins, and operates in a hot market, it could potentially be valued at a higher multiple, perhaps 9x to 10x or more of annual revenue.
