* YoY growth hasn't been consistent, I'm not sure if we can rely on a 50% YoY straight line projection, it'd be good to see what the growth rate of earnings has been YoY maybe that's a better way to project?
* Out of curiosity why a multiple of 10x of top line? Aren't most TechCos valued on Earnings? What's the industry standard here? and can we work out a mean?
* RKN Revenue add wouldn't be adding just 19.9% of their top-line to ours as they have an independant cost base. You're better off calculating the dividends NOV will receive as part of their ownership adding on to NOVs top-line i.e historically RKN have paid 5c per share full year divi which will be: 0.05* 22.5M (shares being aquired) = $1.125M p.a. added to NOV's revenue.
*Also what's interesting to see is the split of income stream growth on p.8 of the Investor Presentation, interesting to see how the rate of revenue growth has exceeded the others for Transaction Processing as compared to the others. I'd be interested to see what the final values are and determining where the areas of growth actually are. Transaction Processing is great as there's almost little to no costs to the revenue received from it, could shape into something similar to say TYR.
Anyway, adding on to your points and keen to add some additional color in the Brain's Trust to determine idea's of valuing Fair Value.
There's plenty of opportunities to scale and form synergies with revenue and costs, so much so that i'm hoping the impact is exponential, and go +$1.00 IMO.
Regards
NOV Price at posting:
59.5¢ Sentiment: Buy Disclosure: Held
