Someone was kind enough to post my previous video on Selfwealth - I have made an update on the back of the most recent quarterly and based on various tailwinds SWF now has, I have raised my price target to $1.15 -
Video for those interestedTwo Acquisitions that are comparable to Selfwealth:
First - Acquisition of E-Trade Australia in 2007.
E-Trade in 2007 was an online broker that had 25% market share of online share trading with 300,000 traders on the platform. E-Trade was acquired by ANZ for $430 Million AUD at the time, which adjusted for inflation would now be $~580 Million.
Secondly - early this year in January, we saw the acquisition over in the U.S of the online broker and trading platform TastyTrade. TastyTrade was acquired by IG Group for US $1 Billion or $1.289 Billion AUD. For reference, TastyTrade had 150,000 traders on the platform. For comparison, we estimate that SelfWealth is now sitting at around ~75000 traders.
SelfWealths market cap as of writing is at $135 Million AUD. Selfwealth, based off comparable acquisitions, is looking undervalued in my opinion.
Also, yes, although both acquisitions are not perfect comparisons based off the amount of money made per trader, they are the closest thing we have got. Keep in mind, SelfWealth is continuing to grow its trader base and marketshare, as well as innovate in ways to increase the amount they make per trader on the platform.
Next quarter we will see the effects that US Trading launch had on SWF, as well as the benefits of the newly negotiated OpenMarkets contract. This is on the back of the recent Gamestop Debacle among the more broader trend of an influx of new Millenial and Gen Z traders and investors. The March quarter is also historically good and I expect we can see a re-rate of the Share Price around this time. GLTAH.
