Just a simple valuation using latest enterprise value to revenue...

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McLithium

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23/11/22

20:38

Post #: 64950442
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Originally posted by nigelnz: ↑

Wow! We broke through the imposing wall at 17.5 (looks like some good volume yesterday). I think that was a psychological barrier for a few investors. With those big sell numbers at 17, 17.5 and 18 now gone, I'm expecting to see a run back into the 20s over the next few days. That will then trigger the TA investors to jump back on board and we'll see even more action. At least that's what I'm hoping to see. Time to sit back and enjoy the ride

All in my humble opinion of course, not to be taken as financial advice, see your own advisor, lawyer and barman etc.

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Just a simple valuation using latest enterprise value to revenue stats. Current multiples are around 5.2x, per source below.

(Note this should be conservative as the average revenue growth for this multiple is 26% p.a. K2fly’s ARR growth is consistently above 50%.)

K2F has ARR of around $7.0m ($6.5m at Sept plus $0.55m from two new contracts this week). Multiplied by 5.2x is $36.4m enterprise value. Plus $6.2m cash at Sept is $42.6m equity value.

Implied conservative share price of 25.0 cents. Would be a nice 43% uplift from current levels. Hopefully some further contract wins to boost this even more.

https://developmentcorporate.com/2022/10/24/software-equity-group-3q22-saas-public-market-update/

Last edited by McLithium: 23/11/22

K2F Price at posting: 17.5¢ Sentiment: Buy Disclosure: Held
8 Upvote

0 Great analysis

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