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Ann: Big to Acquire US Hospitality Platform Tipsly, page-131

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16/11/17

18:43

Post #: 28866347
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Originally posted by Busy Bean ↑

Put very simply....

1) We are already circa $80-$100m annualised revenue based mostly on Australian pilllar 1.
2) US opportunity, just based on today's announcement of 141,000 SMEs, should also be another $100m pillar 1 revenue by FY19 (assuming a 10% uptake and $7,000 ARPU).
3) Then add in pillar 2 and pillar 3 opportunity, let's say another $50m conservatively by FY19.

So FY19 it's not unreasonable to be at $250m total revenue. Assume margins are 30% (conservative as pillar 2 & 3 should be higher) then that's $75m FY19 EBIT.

Multiple that by 25 for a growth P/E stock then FY19 valuation is $1.9b.

Even if my numbers are off slightly, it would be hard to imagine a valuation less than $1b in next 12-18 months, unless something goes really wrong with the execution/expansion.

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Great calculations @Busy Bean but given recent announcements eg Apple TV etc these are extremely conservative figures.

IMHO you can't put a dollar value on these agreements yet but one thing is for sure that once the market takes notice and revenue and profits go through the roof then the share price will truly reflect these agreements.

GLTAH

BIG Price at posting: $4.31 Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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