Went back and reviewed the 2 research reports Red Leaf and Wise Owl that used Peers comparison valuations to determine value
2 Methods
EV/Merchants
Peer comparison was based at $20000/ per merchant - conservatively they used $10000 when ARPU was $1084. I have used the Mid Point now of $15000 as ARPU per last qtrly was $5000.
Paying Customers 3100 + 22.5% of pipeline 25000 equated to 8612 @ 15000 = $129M
Fully Diluted basis 156 Million Shares = 82 cents per share
Revenue Method
5.6 x Revenue - Conservatively from last qtrly put this company on $6m Qtr FY 18 - $24M PA
5.6 x 24M = $134M
Fully Diluted basis 156 Million Shares = 85 cents per share
Two different methods both having us trading at a hefty discount to fair value IMO. Options provide even further value given the time frame left
Given the qtr on qtr growth and the start of the international rollout are we beginning to see the early stages of a potential $1B company
I hope so
Cheers
BIG Price at posting:
53.0¢ Sentiment: Buy Disclosure: Held