Food for thought by screening ASX listed companies with a...

Food for thought by screening ASX listed companies with a business description including "Fintech" or that operate in banking technology.

Average EV/revenue trailing multiple of 5.1x and median of 3.7x.


Due to limited forward multiples for peers i'm sticking with the trailing multiple for the below purposes.

I've updated 1CG for today's market cap and assumed an annual revenue of $4.5m. Basis for the annual revenue of $4.5m is 100,000 users at an assumed annual revenue figure of $45 per user. Per the investor update in May 2023, average revenue was $25 per customer (on total 70,000 users at this point in time). Have assumed a $20 uplift per user with the next day tax service increasing revenue per customer and the mortgage product increasing revenue per customer.

Based on this, 1CG is still trading at a 2.2x multiple and looks like it should be at least 3.5x - implying an EV of roughly $15 million (market cap of $16m less assumed $1m cash currently held). Share price should be at least 2.3c based on this IMO. I think the multiple could still be a lot higher than that given the growth trajectory and scope for even higher revenue per customer. I therefore think 2.3c is base case.