Ollie if you take Pandevs's SaaS valuation metric of 10 times...

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25/02/16

10:17

Post #: 17111532
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Originally posted by OllieB ↑

Atlassian was never listed in Australia i.e. it wasn't an Oz listed company transferring to the US.

While I can't think of any companies that were listed in Oz and successfully moved their listing to the US, I can think of a few that talked about it and even tried (I note Linc Energy relisted in Singapore, but that didn't work too well for them).

Same argument each time -> Aussie's don't get it -> need to list in the US -> we'll be worth way more there. To me this is just management talking it up and being promotional.

One that almost happened was SEA AU, which is a shale oil play. Clearly a dog now, but at the time the shale oil market was booming, it has good management, good projects etc. It had at least 5 clear comps in the US and was trading at a significant discount to the comps. Even with a clear arb the Americans still didn't want to pay a premium to the Aussie price and the relisting fell over literally a day or 2 prior. This is one example that the Americans don't want to pay a premium to the Aussie valuation even with obvious comps and a booming market.

There are numerous others that have spoken about it and also failed (but SEA seemed to be the easiest in for quite a while). Maybe 1PG can do it, but history and probability is against them.

I think tech valuations depend a lot on the cycle, but if they had $75m in revenue which had been growing extremely quickly, then sure, it could be worth more than its current market cap, but will depend on the market. I haven't done the work to guess what revenue multiple 1PG might be on with $75m revenue etc, but given 1PG currently have virtually no real revenue (maybe that changes this year), I think it is too early to be talking about $75m revenue and then trying to determine a theoretical valuation.

Maybe ask any broker looking to do the IPO -> at $75m revenue -> must be worth billions!!!

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Ollie if you take Pandevs's SaaS valuation metric of 10 times revenue then it would be worth $750 mill at that point. I think that takes into consideration a maturation of revenue growth rates. Do you agree with that way of valuing a SaaS company?

1PG Price at posting: $2.08 Sentiment: Hold Disclosure: Held
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Ollie if you take Pandevs's SaaS valuation metric of 10 times...

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