In May 2020, an article from a Frankfurt based investment bank reported an analysis of the valuations of cyber security companies between 2006-2019 in terms of EV/sales and EV/EBITDA. https://ma-review.com/cyber-security-an-insight-into-the-sector/ m a - r e v i e w . c o m / (see sec. 6.1)
The article showed that in 2019, the average EV/sales was 5.5 , the EV/EBITDA was 25.3. Here's a comparison with the latest EV/Sales numbers (late 2020) for some US players and several ASX cyber companies, including TNT :
The TNT number I've based on the annualised FY21 Q1 revenue (=$60.6m). TNT currently has the lowest EV/sales ratio of all the ASX cyber stocks.
If TNT achieves the base scenario revenue of $28m for FY21 Q2 (or $112m/y) which seems highly likely, its EV/sales ratio would be 3.2. This would also make it's valuation -40% below the sector average. From any angle, TNT is looking well undervalued as a cyber stock.
All IMHO, DYOR
TNT Price at posting:
36.0¢ Sentiment: Buy Disclosure: Held