Actually there is a good reason, provided that revenue can be assumed to be a reasonable approximation of fees that will eventually be received. The current value of a company is the adjusted future earnings of the company. The problem with annual reports is that for most companies they represent a look in the rear view mirror and we need to predict the most likely future outcome based on the past.
For Shine we have a slight advantage in that a large percentage of cashflow from revenue will be received in future years. This means that, provided they've accurately assessed the liklihood of winning cases, we have a glimpse into the future earnings of the company for the next couple of years. Cashflow relates to money that was received at the time of the report (past), a large percent of revenue relates to money that will be received as cash in coming years (future).
So for a simplified example if they just made a large aquisition there might be a sharp increase in revenue, but cashflow might go up by a much smaller amount, but this would be because the fees earned will go up in future years but we don't have the money yet. This matters quite a bit to the valuation. Likewise if business drops off sharply the revenue would be a leading indicator as we would still be earning cashflow from prior years when Shine was more busy.
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Last
83.5¢ |
Change
0.020(2.45%) |
Mkt cap ! $144.6M |
Open | High | Low | Value | Volume |
84.0¢ | 84.5¢ | 80.0¢ | $42.13K | 50.44K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 7723 | 80.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
83.5¢ | 999 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 7723 | 0.800 |
1 | 24997 | 0.790 |
1 | 33597 | 0.760 |
1 | 936 | 0.750 |
2 | 1688 | 0.730 |
Price($) | Vol. | No. |
---|---|---|
0.835 | 999 | 1 |
0.840 | 10793 | 3 |
0.850 | 65684 | 8 |
0.865 | 1155 | 1 |
0.890 | 14633 | 1 |
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