Based on my model I figure it to require a roughly 23m NPAT to justify a $1.00 share price. Work back from there to figure the likely NPAT margin (best in class digital companies on ASX like REA, CAR have around 30% NPAT margins so that implies a revenue figure of around 76m. Baking in a lot of revenue growth then.
As a newcomer to looking at this stock am I crazy to think that the company should be monetising the real estate referral channel? I.e. charge $5 per move to the real estate agents / property managers so that their clients can use the platform? The agents / managers could bear the cost or pass it on and it's hardly breaking the bank ($5!!) and that is $5 million in revenue straight up. Maybe its my simple Australian mind thinking that if you have a valuable product you shouldn't be afraid to charge for it rather than just chasing user numbers.
Thoughts from those who've been following the stock longer than me?
UPD Price at posting:
$1.03 Sentiment: Hold Disclosure: Not Held
