Here are the concluding remarksfrom a report dated 18 January 2021 I found on Seeking Alpha.Author was Richard Durant. Heading was: GrowthAnd Profitability Concerns Weigh On stock.
“Valuation
While Nearmap appears tobe relatively inexpensive in comparison to many high growth companies, there isreason to be concerned about the company’s decelerating growth. Given the sizeof the market opportunity and Nearmap’s potential for improving margins goingforward, I believe the stock is modestly undervalued.
Nearmap raised capital in September 2020 with thestock priced at a floor of 2.69 AUD and a cap of 2.77 AUD. At the same time, anon-executive director sold 4.2 million shares, representing 15.1% of hisholdings in Nearmap. Given that there was little urgency for the capital raise,it appears opportunistic and may indicate that management believed the stockwas overvalued.
Based on a discounted cashflow analysis, I estimate the stock is currently worth approximately 2.75 AUDper share. Potential risks include continued growth deceleration, loss ofmarket share to Aerometrex and continued losses as a result of increasedcompetition.”
DYOR please.
