New from Intel ligent Investor:
"Singapore’s PropertyGuru, backed by fabled VC investor Peter Thiel and REA Group, plans to list in the US soon. It’s the closest comparable to Frontier Digital and is expected to list at around 18x revenue. If FDV traded at the same value, the stock price would be at least $4 compared to its current price of around $1.50.
It’s made enormous progress over the past 18 months with the company virtually breaking even on a cashflow basis. The importance of this achievement cannot be overstated.
As we’ve seen with similar businesses such as REA Group, once they become profitable they‘re a license to print money if you’re the market leader, as Frontier’s investments typically are.
Despite the good news, Frontier still trades at around eight times next year’s revenue, while iCar Asia – essentially the Indonesian version of Carsales and a deeply inferior business to Frontier – has just accepted a takeover offer priced at 15x revenue. REA Group currently trades at 22x revenue."
FDV Price at posting:
$1.52 Sentiment: Buy Disclosure: Held
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