KDY 0.00% 2.7¢ kaddy limited

DW8 Growth, page-14325

  1. 919 Posts.
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    Good question. The general rule of thumb of mine is below


    ideally I like to strike a balance between valuing growth, bottom line, margin, scalability in just one simple metric so I use this ratio: 20x expected MAIDEN gross profit, discounted heavily by the total years out

    Its not a standard methodology because it's tough to value profitless businesses. So I thought of this metric myself. (revenue multiple metrics are garbage and block anyone whoever tells you they are good)

    if its maiden gross profit could be 5m I would say value at the beginning of that year is likely to be about 100m and I would expect market cap to drift there during the year.

    Discount the valuation for every year out the maiden profit is expected. I use a high discount rate as it's dependent on raises. so about 25%

    I think dw8 is about 1-2years out from maiden profit, likely about $2-3m, which values it around 30-40m cap here and possibly 60m in 1-2 years, so more to fall

    Just my opinions and method of thinking.
 
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